Tokyo Stock Exchange Halts Trading All Day for First Time Due to System Failure

Tokyo Stock Exchange

[Asia Economy Reporter Hwang Yoon-joo] An unprecedented situation occurred at the Tokyo Stock Exchange, operated by Japan Exchange Group (JPX), the world's third-largest stock market, where trading of all stock items was suspended all day due to a system failure.

The Tokyo Stock Exchange announced on the 1st that all stock trading would be suspended all day due to a system failure.

Kyodo News reported that although trading at the Tokyo Stock Exchange was halted for about three hours in November 2005 due to a trading system problem, this is the first time trading has been suspended for the entire day. NHK also reported that in January 2006, the Tokyo Stock Exchange trading was completely suspended in the afternoon due to reaching the system's processing capacity limit caused by a surge in trading volume.

On this day, from before the market opened, the distribution of price information was not smooth due to the system failure, and trading of all items was suspended from the market opening at 9 a.m.

Trading was also suspended at the Nagoya Stock Exchange, Fukuoka Stock Exchange, and Sapporo Stock Exchange, which use the same system as the Tokyo Stock Exchange.

The Osaka Exchange, under JPX but using a different system, conducts futures trading such as stock indices. The Osaka Exchange mainly focuses on futures trading. The Tokyo Commodity Exchange also conducts trading of crude oil futures and others.

Due to the trading suspension, major indices of the Tokyo stock market, such as the Nikkei Stock Average (225 issues) and the Tokyo Stock Price Index (TOPIX), are not being calculated normally.