Two days after an investigation into an Internet firm caused the Tokyo Stock Exchange (TSE) to suspend trading 20 minutes before the close of the day, the TSE announced that it will boost the maximum number of trade executions it can process daily from 4.5 million up to 5 million as of January 30, 2006.
Previously, the TSE set its timing to halt the transactions for all issues when the number of orders exceeds 8.5 million or trade executions exceeds 4 million based on the current upper limit with 9 million for orders and 4.5 million for trade executions. On January 19, the number of orders was 7 million, which was well under the capacity increased on January 10 from 7.5 million to 9 million. However, the number of trade executions soared to 4 million.
In light of the above situation, TSE hopes that further enhanced system will well accommodate the surging number of trade executions, and TSE also plans to raise the limit for orders up to 15 million, for trade executions from current 7 million to 8 million by the end of the year.
On today’s market, order placed came to 6.56 million, trades executed came to 3.35 million, respectively.
JASDEC does not share the common difficulties which TSE is currently undergoing because JASDEC settles TSE’s trades through net settlement system in which all the buy and sell transactions shall be netted per each issue of an individual security firm to settle at a single transaction. At JASDEC, the change in the number of orders does not necessarily lead to the change in the number of settlement, even when the number of orders suddenly surge.