Due to the recent surge in stock trading in the Tokyo market, the Tokyo Stock Exchange (TSE) has reportedly decided to increase its order processing capacity to around 7.5 million trades a day, according to Bank Tokyo Mitsubishi (BTM).
Trading is active in the Tokyo market, the Nikkei average reached the 13000 yen level for the first time in four years and three months on September 20, trading volume at the first section of TSE hit the record high of 3.7 billion shares on September 21. While trading volume has continued to remain strong with daily average of around 5 million trades, approaching the upper limit of 6.2 million, TSE has determined that system reinforcement is necessary to prevent potential system related problems.
Due to ever increasing trading activities by individual investors who actively trade on the internet, Japanese stock exchanges are prompted to increase system capacity to avoid system problems. TSE is planning to increase the daily order processing capacity up to 9 million trades by February 2006. Jasdaq securities exchange for start-ups, which also sees it trading volume hit record high, is working to reinforce its system capacity to around 2 million trades in January 2006, and 4 million trades in the spring of 2006. In the meantime, Jasdaq is regulating proprietary transactions of securities companies for issues whose previous-day trading volume exceeded 100 million shares.