Tokyo Course Halts Trading for the whole day in the worst outage


The Tokyo Stock Exchange suspended all-day trading on Thursday due to a hardware malfunction, which led to the worst malfunction in the world's third-largest course.

Tokyo Course Halts Trading for the whole day in the worst outage


Japan Exchange Group Inc., the operator of TSE, did not give a time frame for the resumption of trading, and said it would announce plans for tomorrow's meeting later. Stopping means that buying and selling of thousands of shares will be frozen’ on the first day of the new quarter. The previous shutdown affected only part of the business day.

The problem has dampened investor sentiment following the overnight positive performance of the US stock market and other major markets in the region, including China, Hong Kong, South Korea and Taiwan. The closure could also affect investor confidence in the Japanese market system.

"It's very disturbing. When things like this happen, it affects investor confidence in the Japanese market," said Ryuta Otsuka, a strategist at Toyo Securities.

The exchange said there was no indication that the closure was related’ to hacking. Chief Cabinet Secretary Katsunobu Kato, who said it was “regrettable”, echoed the halt that trade opportunities had been’ curtailed.

Blow trust

New Zealand is on high alert for any upheaval in global markets after a cyber-attack triggered a four-day business shutdown in August.

Exchanges in other markets of the country, including Sapporo, Nagoya, and Fukuoka, have also suspended trade. Derivatives, including futures trading on the Osaka Exchange, which are not affected’ by the system problem. As of 12:44 pm, futures on the Nikkei 225 stock average in Osaka rose 0.2 percent. Shares of Japan Exchange fell 4.7 percent on the PTS platform of Japan Accent.

The benchmark Topics Index fell 2% yesterday, reducing its profit for September to 0.5% and closing the current quarter with a 4.3% advance. A Tokyo-based equity trader at a local brokerage says there will be queues of mutual funds at the beginning of this month and the second half of the fiscal year, which could increase volatility tomorrow if the course does not open today. ۔

Japan's 15 6.15 trillion stock market is the world's third-largest after the United States and China. At the top of the Tokyo Stock Exchange are 2,167 stocks, with a total daily turnover of about $ 22 billion over the past year.

Makoto Sengoku, a market analyst at the Tokyo Research Institute said he was looking at the response to the TSE Mother Index, a key measure of performance for startups in Japan. "For retail investors who are trading on a daily basis, today may be a shock, but for those who are not trading frequently, it is not as effective," he said.

Date of error

The system problem is the biggest since a series of computer problems in the mid-2000s that led to the resignation of the exchange president. Trading was suspended’ for 4/2 hours in 2005 because, for the first time, equity trading was completely suspended due to a booted system upgrade. In January 2006, the exchange began trading following an increase in orders, following an investigation by the high-flying Internet company Livedoor Company, which overloaded its computer system. As a result, trading hours were shortened’ to three months.

The Tokyo Exchange introduced its Sharp Arrowhead system, developed by Fujitsu Limited and other companies in January 2010, but that did not completely resolve the issue. In 2012, a computer glitch halted trading on 241 securities, while a year later; a system glitch took derivative trading offline.

Fujitsu spokesman Taco Tanaka said the company was investigating the latest case, but declined to comment on details. People familiar with the matter said Japan's Financial Services Agency was reaching out to brokers to assess the impact of the incident on clients.

The trade took place on the same day that the Bank of Japan's Tankan survey, one of Japan's most-watched economic indicators, was released’ just 10 minutes before trading began. The major manufacturers in the survey have taken advantage of its lowest point and supported the idea that the worst-case scenario for the economy could end, even though confidence is lower than before the epidemic.


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