OSE, TOCOM Derivatives Trading Hours to Be Changed Second Half of FY 2024
Tokyo Stock Exchange publicized its “Action Program for Strengthening the Functions of the Cash Equity Market” on 27 October. In the Action Program, TSE stated the extension of its trading hours for 30 minutes and that it will start preparing specific contents towards TSE’s plans to upgrade its cash equity trading system in the second half of FY2024.
In response to the failure that occurred in its arrowhead cash equity trading system in October 2020, TSE established a Council for Recurrence Prevention Measures in May 2021. The Council held discussions with a variety of market users on necessary rules and procedures to create an environment that enables a quick and smooth resumption of trading in order to improve resilience.
In this regard, Mr. Akira Kiyota, Chief Executive Officer of Japan Exchange Group, explained that the extension of trading hours will help further improve resilience, as well as provide trading opportunities to investors and improve international competitiveness. Mr. Kiyota also stated that TSE wants to strengthen its market function by shortening the reset time necessary in the event of a system failure, with a focus on being able to provide trading opportunities on the same day wherever possible, while at the same time strengthening the trading function and reviewing market data distribution.
Current TSE cash equity trading hours are a morning trading session starting from 9:00 to 11:30, and an afternoon trading session from 12:30 to 15:00, or 5 hours a day. After the change, TSE plans to extend the afternoon session from 12:30 to 15:30, a 30-minute extension, or 5.5 hours a day. Other venues in the world trade longer than TSE, with London and Amsterdam open 8.5 hours a day, Singapore 7 hours and New York 6.5 hours.
In parallel to the TSE cash equity trading hour extension, Osaka Exchange and Tokyo Commodity Exchange, both being member exchanges of Japan Exchange Group along with TSE, plan to change their security index/commodity futures and options and securities options day session trading hours by extending them by 30 minutes from the current 15:15 to 15:45. The night sessions would start 30 minutes later, from the current 16:30 to 17:00, but the closing time would remain unchanged at 6 AM on the next morning.
These changes would apply at the same time as the TSE cash equity trading hours extension. However, JGB futures and options trading hours will not be extended.