TSE Listed Companies Move Forward Unification Of Trading Units

The Tokyo Stock Exchange (TSE) on 3 April provided a list of companies that have carried out corporate actions to change their trading units effective from 1 April 2009. The changes by the companies are part of an ongoing plan

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The Tokyo Stock Exchange (TSE) on 3 April provided a list of companies that have carried out corporate actions to change their trading units effective from 1 April 2009.

The changes by the companies are part of an ongoing plan by Japans six securities exchanges to unify trading units used by listed companies to 100 shares. The TSE says that it has made the list of companies in order to prevent a concentration of corporate actions associated with the unification of trading units on the exchange from causing confusion among investors.

The list of companies provided by the TSE can be found at the official web-site.

Japans securities exchanges currently utilize a trading unit system of shares. In November 2007, Japans six securities exchanges produced an action plan on the unification of trading units, citing the need to improve the usability of Japans securities markets as part of the internationalization of the Japanese market.

As part of the current phase of the plan, which started on 1 April 2009, the exchanges are seeking the cooperation of listed companies in unifying trading units to 100 and 1,000 shares, by the tentative target date of March-end, 2012.

Following this, the long-term aim is to unify trading units to 100 shares, but no target date has yet been specified for this. In the 2007 action plan, it was specified that exchanges would provide lists on their websites of companies that are changing their trading units, in order to avoid causing confusion to investors due to a concentration of corporate actions.

-Trading units currently utilized on TSE:

As of March-end, 2009, a unit of 1 share was utilized by 12.5% of companies listed on the TSE. In addition to this, companies listed on the TSE currently use 5 different trading units: 10 shares (utilized by 0.9% of TSE companies as of March-end 2009), 50 shares (0.6%), 100 shares (40.7%), 500 shares (2.0%) and 1,000 shares (43.4%).

L.D.

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