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JPX group companies undertake various initiatives and disseminate information with the aim of providing the most attractive markets to all users.
Every month, we showcase the highlights of these efforts in short and concise summaries just for you.
Tokyo Venue
On January 4, JPX and its group companies held ceremonies in Tokyo and Osaka to mark the first trading day of the New Year. As with the market closing ceremonies held at the end of 2020, both venues implemented Covid-19 infection prevention measures such as limiting the number of visitors attending and ensuring social distancing. In Tokyo, Finance Minister Aso Taro delivered his congratulatory remarks and rang the bell with trading participant representatives. In Osaka, attendees gave three cheers of "banzai" and took part in a customary hand-clapping to pray for good health and further development of the securities market. Both ceremonies can be viewed on JPX's official YouTube.
TSE has been developing RFQ (Request for Quote) functions and CONNEQTOR with the aim of improving the liquidity of ETFs. We are pleased to announce that development has been completed successfully and CONNEQTOR will go live on February 1, 2021. CONNEQTOR will continue development to add functions. The content and timing of these additions will be based on requests from users and responded to flexibly. TSE remains committed to providing highly convenient trading venues for investors.
JSCC launched the ETF Creation/Redemption Clearing Service on January 18. This service allows designated securities companies to use netting of settlements related to ETF creation/redemption and those related to listed securities etc. traded on stock exchanges. JSCC has already launched the ETF Creation/Redemption Platform Service in April 2020 prior to this service with the aim of standardizing application procedures of ETF creation/redemption, which were different for each asset management company. We expect that these efforts will further contribute to improving the liquidity of the ETF market such as facilitation of market making, etc.
On February 1, 2021, TSE will launch a new service to distribute timely disclosure information and Stock Price* in Web-API format in order to further improve the convenience of market data distributed by TSE. By creating an environment where it is easy to acquire market data through the use of these API services, TSE expects that fintech companies will create new investment-related information services, digitization of business processes in financial institutions will occur, and research institutes will revitalize analysis work. TSE will continue with efforts to enhance our market data services for our customers.
*Last Sales Price Information, etc. for which 20 minutes or more has elapsed since distribution by TSE market information system.
Following the conclusion of an agreement between JPX and Shanghai Stock Exchange (SSE) on April 22, 2019 to establish Japan-China ETF Connectivity, ETFs under the scheme were listed simultaneously on both exchange markets on June 25, 2019. On January 25, 2021, JPX and SSE agreed to further develop the Japan-China ETF Connectivity scheme by broadening the lineup of products under the scheme. On the same day, JPX and Shenzhen Stock Exchange (SZSE) concluded an MoU on establishing the scheme among other matters. JPX and SZSE will actively collaborate to encourage ETF creation and investment under this scheme and promote the Japanese and Chinese securities markets to investors, and also collaborate on promotion activities to support SMEs in both countries.
On January 25, the 2nd Japan-China Capital Markets Forum was held online by the securities regulators and related industry organizations of both countries. Following the first edition in 2019, this second edition gathered key stakeholders of the Japanese and Chinese securities industries including Commissioner HIMINO Ryozo of the Financial Services Agency (FSA), Group CEO KIYOTA Akira of Japan Exchange Group, Inc. (JPX), Chairman MATSUTANI Hiroshi of the Investment Trusts Association, Japan (JITA), and Chairman SUZUKI Shigeharu of the Japan Securities Dealers Association (JSDA), along with about 400 online participants. Participants heard reports of recent achievements of collaboration between the two countries' capital markets, as well as discussions on capital market restructuring, the future of Japan-China collaboration in the capital markets, derivatives market development, and the role of capital markets in an aging society.
On January 28, JPX released its consolidated earnings report for Q3 FY2020.
Operating revenue was up JPY 9.8 billion (+11.3%) year on year to JPY 97.2 billion due mainly to an increase in cash equities trading value.
Operating expenses were up 3 billion (+7.2%) year on year to JPY 45 billion due mainly to an increase in system-related costs as well as the impact from reflecting expenses posted by TOCOM, which became a subsidiary of JPX in October 2019, in consolidated financial results.
As a result, operating income increased by JPY 6.1 billion (+12.8%) to JPY 54.3 billion with net income (attributable to owners of the parent company) up JPY 4 billion (+12.1%) to JPY 37.3 billon.
