CEO Message

On April 4, 2022, the market operated by Tokyo Stock Exchange, Inc. (TSE), a subsidiary of Japan Exchange Group, Inc. (JPX), will be restructured into three new market segments: Prime Market, Standard Market, and Growth Market.


The current four market segments (1st Section, 2nd Section, Mothers, and JASDAQ) are a result of having carried over the segments that existed before the merger between TSE and Osaka Securities Exchange Co., Ltd. (OSE) in 2013, when the two cash equity markets were integrated. However, a number of issues had been raised, such as that (i) the concepts of the current market segments are ambiguous and their user-friendliness is low for many investors, (ii) the segments do not sufficiently incentivize listed companies to sustainably improve corporate value as expected, and (iii) there are no indices that function as investable indices while also representing the market.


The market restructure will reorganize the current market segments into three new segments based on clear concepts. The Prime Market will be oriented to companies which center their business on constructive dialogue with global investors. The Standard Market will be oriented to companies with sufficient liquidity and governance levels to be investment instruments in a public market. The Growth Market will be oriented to companies with high growth potential.


In conjunction with the market segment restructure, we will also be making revisions to TOPIX, currently comprised of all companies listed on the 1st Section, with the aim of further improving not only how well it represents the market but also its functionality as an investable index.


Through this market restructure, JPX will boost listed companies' sustainable growth and mid- to long-term corporate value creation, thereby providing attractive stock markets that have the approval of a diverse range of global and domestic investors, and by extension contributing to a more affluent society in general.


We now have one year left before the transition to the new market segments. In November last year, we revised the initial listing examination criteria ahead of time with the new market segments in mind, and preparation for improved disclosure related to business plans and growth potential for start-ups has already started, aimed at the new Growth Market. In addition, consideration of the rule-based framework for the transition is progressing as scheduled, with revisions to Japan's Corporate Governance Code, which is expected to be applied to Prime Market-listed companies, at the final stage of deliberation by experts. At the end of this year, we will ask each listed company to choose the new market segment on which it would like to be listed.


For a smooth transition to the new market segments, JPX will continue to put its utmost efforts into promoting understanding of the new rules and establishing systems for operating the new framework. In order for this market restructure to be truly effective in contributing to the affluence of society, the understanding and cooperation of market-related parties such as investors and listed companies are indispensable.


Once again I would like to express my appreciation for your understanding and cooperation so far, and we sincerely hope for your further support during this last year before the transition.



April 2021

Kiyota Akira

Director & Representative Executive Officer, Group CEO

Japan Exchange Group, Inc.