The board of directors for the Tokyo Stock Exchange approved the launch of a holding company Wednesday that will be designed to provide oversight to trading on the exchange.
The company, which will be divided into two subsidiaries, will have one branch that will manage the exchange market and another that will function as self-regulatory body.
The regulatory subsidiary will be responsible for reviewing applications from companies that apply for listing on the TSE.
Plans for the holding company arose as an answer to the conflict of interest created by having a branch of the exchange, which seeks to make a profit, also regulating trading on the exchange. The holding company is designed to serve as an answer to by separating the functions of a self-regulatory body and the exchange’s effort to bring in profits.