News Release

Mar. 04, 2021 TSE Recognition under EU Benchmark Regulation


Tokyo Stock Exchange Inc. (TSE) calculates and publicizes stock indices as well as provides financial instruments markets for trading of securities.

In 2018, the European Union (EU) enforced benchmark regulation (EU Benchmark Regulation), and for what EU considers as financial benchmarks of third countries, the regulation will be applied after the grace period ends (see “Reference” below), and to date, TSE has been proceeding with procedures to obtain approval (Recognition) from EU authorities in accordance with Article 32 of the EU Benchmark Regulation.

TSE has received approval (Recognition) and Japan’s premier index series calculated and published by TSE such as TOPIX (Tokyo Stock Price Index) and JPX-Nikkei Index 400 are entered in the public register (Register of ESMA) of the European Securities and Markets Authority (ESMA). Stock indices entered in the register can be used for the composition of financial products in the EU even after the grace period ends.

TSE has been audited by an external audit institution and disclosed a report on a system constructed to comply with the principles for financial benchmarks (IOSCO Principles) established by the International Organization of Securities Commissions. Our compliance with the recent EU Benchmark Regulation such as robust governance and/or controls, etc. is in line with global standards as an administrator of stock indices, and we will endeavor to continue providing highly reliable services.

You can access information for the TSE indices entered in the ESMA public register through the ESMA website or in the Benchmark Statement compiled and published by TSE in accordance with the EU Benchmark Regulation. Information on related regulations for TSE’s index governance can be found on the following website.

Reference : EU Benchmark Regulation

The EU Benchmark Regulation was introduced in response to manipulation of financial benchmarks such as the London Inter Bank Offered Rate (LIBOR) manipulation in 2012. With the aim to ensure consistency and reliability of financial benchmarks, it has established requirements for robust governance and controls, etc. for the administrators of financial benchmarks.

With the introduction of the EU Benchmark Regulation, benchmarks (including stock indices) that can be used within the EU by supervised entities (banks, investment firms, asset management companies, etc.) are limited to those benchmarks listed in the ESMA public register.

The EU Benchmark Regulation was enacted in June 2016 and became effective from January 2018 for financial benchmarks calculated in the EU. As well, the regulation will be applied to third country benchmarks after the transitional period ends at the end of 2023 (tentative for now).

Regulations Related to Index Governance (including Benchmark Statement under EU Benchmark Regulation)


Tokyo Stock Exchange, Inc. Information Services, Regulation & Operations
TEL:+81-3-3661-1361 (Main phone)