Public Comments

Comments

• I support the extension of trading hours. Globalizing trading hours will bring more overseas funds into Japan and be expected to increase retail investors in Japan, which will lead to activation of markets. (Retail Investor)
• I support the extension of trading hours. However, the extension to 3 a.m. on the next day is insufficient. I request the same or longer trading hours as other exchanges where the similar products are listed. I hope that trading starts from 8 a.m., rather than 9 a.m. and ends at 7 a.m. on the next day like OSE-FX. (Retail Investor)
• I request the extension of trading hours to the closing of the New York (NY) market. Overseas markets, especially the NY market, have a great influence on the Japanese markets, often in the form of price gap in the Tokyo market. As a result of the price gap, price range in the Tokyo market tends to narrow. Therefore, as a retail investor, it is difficult to trade in such market and is not possible to enter the market as I hope. The reason for the frequent occurrence of price gap is that there is a big difference between the closing of Japanese markets and the results of the NY markets. In order to improve the situation, it is necessary to make the closing of evening session the same as the closing of the NY market. (Retail Investor)
• I request that trading hours of night session are extended to the closing of NY markets. U.S. markets often fluctuate sharply one hour before their closing with high trading volume. I use the futures contracts for hedging and the extension of trading hours to 3 a.m. is insufficient.
• I suppose it would be good to make the trading hours for futures contracts to be 24 hours like FX, rather than extending to 3 a.m. (Retail Investor)

OSE’s Responses

• Due to a strong market need for the extension of trading hours and our belief that we should provide investors with as many trading opportunities as possible as a market provider, we have determined to implement the partial revision of trading hours as originally proposed.
• We will consider further extending trading hours, based on the trading volume, etc. after the extension of trading hours this time.

Comments

• I disagree with the extension of trading hours. It would decrease sleeping time. Our customers consider the extension unnecessary. I feel it strange that trading hours for night is longer than for day. (System Company)
• Many customers that trade through staff in securities companies are in their sixties or older. Considering their daily life cycle, the extension of trading hours will not lead to increase in trading volume. Some customers say that they would stop trading at the current closing time, 11:30 p.m. and not submit orders, etc. after 11:30 p.m. if trading hours are extended.(Securities Company)
• If the extension of trading hours makes the range of customers that can participate in trading different hour by hour, the retail investors that cannot participate in trading late at night would bear the risk of price fluctuation and the difference of trading volume. Therefore, the extension should be considered in terms of ensuring fairness of trading. (Securities Company)
• I feel it strange that derivatives trading is conducted during the time cash markets are closed because cash markets and derivatives markets are correlated. (Securities Company)
• For a securities company, the cost will be increased by developing the system, assigning staff in case of the occurrence of system malfunction late at night and compliance, etc. In addition, it is necessary to change staff administration. (Securities Company)

OSE’s Responses

We received a comment indicating concerns about an increased burden caused by system developments or assigning staff and a comment pointing out that the time investors can participate in trading would be different for different types of investors. However, the extension of trading hours is intended to enhance the convenience for investors and market liquidity through providing hedging opportunities based on overseas market trends and economic events, and also to improve the current distorted situation where price is discovered in overseas markets during the important time in the world markets although the trading is based on the Japanese cash markets.