On April 4, 2022, TSE reorganized the former market segments (First Section, Second Section, Mothers and JASDAQ) into three new market segments: Prime, Standard and Growth.
This page provides details of the process of study to date, as well as the details of system revisions related to the listing system for the new market segments.
Please see below for an overview of the market segment review, including the concept and main listing criteria for each market segment.
| Planned Schedule (As of July 13, 2021) |
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In conjunction with the review of market segmentation, TOPIX will also be reviewed with the aim of further improving its functionality as an investment target in addition to its market representativeness. Please see below for details on the review of stock price indices.
Consultation Paper "Review of TSE Cash Equity Market Structure"
In December 2018, TSE published the Consultation Paper "Review of TSE Cash Equity Market Structure" and conducted the public consultation. (From 21 December 2018 until 31 January 2019).
| "Consultation Paper "Review of TSE Cash Equity Market Structure"" |
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| "Related Data" |
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Comments Received from Market Participants in Response to the "Review of the TSE Cash Equity Market Structure"
In March 2019, TSE published the "Comments Received from Market Participants in Response to the Review of the TSE Cash Equity Market Structure" and the "Current Issues regarding TSE Cash Equity Market Structure (Summary of Current Issues)."
TSE has conducted public consultation as well as individual meetings, inviting comments from wide range of stakeholders. TSE has categorized the market responses received, and has published the "Comments Received from Market Participants in Response to the Review of the TSE Cash Equity Market Structure." Also, TSE has summarized the market responses and outlined the discussion points regarding the current issues of the market structure, publishing it as "Current Issues regarding TSE Cash Equity Market Structure (Summary of Current Issues)."
In May 2019, to further aid the understanding of market participants with regards to the current issues, TSE additionally published related materials, such as additional material related to the various issues identified as well as TSE's comments and responses with regards to the comments received.
| "Comments Received from Market Participants in Response to the Review of the TSE Cash Equity Market Structure" |
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| "Current Issues regarding TSE Cash Equity Market Structure (Summary of Current Issues) " |
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| "Comments Received from Market Participants in Response to the Review of the TSE Cash Equity Market Structure"(Updated)* |
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| Related Data concerning "Comments Received from Market Participants in Response to the Review of the TSE Cash Equity Market Structure"(Updated) |
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(note)
- ･TSE's Comments and Responses added
Overview of Market Structure Review and Outline of the New Market Segments
In February 2020, TSE published the "Overview of Market Structure Review and Outline of the New Market Segments" regarding the Cash Equity Market Structure Review. In order to assist and help listed companies, companies preparing for IPO, and market participants start their preparation for the transition, this document describes and explains the outline of the new market segments, the process of transition to the new market structure, and the planned schedule, including the items which will be phased-in before the transition.
| "Overview of Market Structure Review and Outline of the New Market Segments" |
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| "(Summary)Overview of Market Structure Review and Outline of the New Market Segments" |
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Frequently Asked Questions regarding "Overview of Market Structure Review and Outline of the New Market Segments"
TSE has been receiving questions regarding "Overview of Market Structure Review and Outline of the New Market Segments" from listed companies, IPO companies, and market participants, therefore, TSE has published "Frequently Asked Questions regarding "Overview of Market Structure Review and Outline of the New Market Segments"".
| "Frequently Asked Questions regarding "Overview of Market Structure Review and Outline of the New Market Segments"" |
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Revisions to Listing Rules to Enhance Functions for Raising Funds through the Capital Market(First set of revisions pertaining to cash equity market restructuring)
TSE published "Revisions to Listing Rules to Enhance Functions for Raising Funds through the Capital Market(First set of revisions pertaining to cash equity market restructuring)" and conducted the public consultation (From 29 July 2020 until 11 September 2020). The revisions will be implemented on November 1, 2020.
As the Covid-19 outbreak severely impacts business activities and corporate performance, TSE recognizes the urgent need to enhance capital market’s functions for companies raising funds in the market. In light of the planned cash equity market restructuring, TSE will revise the initial listing criteria, etc. to make the initial listing process smoother for companies and encourage corporate value creation over the mid- to long-term and in addition, revise the delisting criteria, etc., allowing listed companies more flexibility in their capital policies and corporate strategies as they face financial turbulence or challenges.
| "(summary)Revisions to Listing Rules to Enhance Functions for Raising Funds through the Capital Market(First set of revisions pertaining to cash equity market restructuring)" |
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Development of Listing Rules for Cash Equity Market Restructuring (second set of revisions)
TSE published "Development of Listing Rules for Cash Equity Market Restructuring (second set of revisions)" and has conducted the public consultation (From 25 Dec. 2020 until 26 Feb. 2021).
In order to realize the smooth transition to the new market segments, TSE will make necessary developments of its rules pertaining to listing rules of the new market segments and procedures for listed companies to the transition.
Revision, etc. of Japan's Corporate Governance Code Based on the Proposal of the Council (Third set of revisions pertaining to cash equity market restructuring)
In light of the proposal from the "Council of Experts Concerning the Follow-up of Japan's Stewardship Code and Japan's Corporate Governance Code," jointly established by the Financial Services Agency and Tokyo Stock Exchange, Inc. (TSE) , with regards to the revision of Japan's Corporate Governance Code, TSE will develop its listing rules pertaining to revision of the Code based on the proposal and the application of the Code for the new market segments. (Public comment period: From 7 Apr. 2021 until 7 May 2021)
(JFSA) Expert Study Group on Capital Markets in Japan of the Financial System Council
The Expert Study Group on Capital Markets in Japan of the Financial System Council has discussed and deliberated on market structure of Tokyo Stock Exchange six times since May 2019.
Based on the results of the discussions, the Expert Study Group has compiled and published "Final Report － A New Equity Market Structure Serving for Companies and Investors in the New Era of Reiwa －" on December 27th,2019.
Upon the publication of this final report, JPX has published a message from Group CEO Kiyota, as "Upon Publication of Final Report by the Expert Study Group on Capital Markets in Japan of the Financial System Council" on December 27th, 2019.
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