Tokyo Diary 1
In a first meeting with a major financial firm here in Tokyo, a market data executive kindly educated me in some of the basics about the differences between Japan's markets and all others, and their effects. For some readers, this may be old hat, but it should point the way to everything I'll be reporting on while here for the Tokyo Financial Information Summit.
Because of the unique nature of the society and its rules for financial services and markets, it is much more expensive to conduct business here. One example of this is the process involved in seeking approval to connect to the Tokyo Stock Exchange, which requires the signature of a firm's chief executive and work by its legal department before submitting an application.
Differences are also visible in tick data, co-location and market opening and closing procedures. In tick data, there are few decimals to account for, because the values of securities are so large in numbers of yen that the smallest increment is likely to be just 1 yen, and nothing to the right of a decimal point. Regarding co-location, the Tokyo Stock Exchange is protective of its market in a way other major markets were not. Technologically, co-location at the exchange and its facilities is possible in a manner that would give users transaction times of 3 milliseconds or less, but the exchange only allows a connection that would be 4, 5 or more milliseconds, which is slow for markets now. Lastly, the Tokyo market opens and closes twice each day, with a midday break. Some firms and traders do all their business and are done for the day after the second market open.
In short, the functioning of the markets in Japan is even different to the rest of the Asia-Pacific region countries, much less the rest of the world. This mirrors the differences in Japanese society. These are a few of the basics anyone entering the securities business in Japan should know.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Data Management
Symphony boosts Cloud9 voice offerings with AI
The messaging and collaboration platform builds on Cloud9’s capabilities as it embraces the AI wave in what CEO Brad Levy calls “incremental” steps.
MSCI counts the cost of bank M&A, looks ahead to custom indexes, AI
Cancellations of overlapping contracts following a bank merger put a dent in MSCI’s earnings, but management remains upbeat about the potential of recent acquisitions and new technology developments.
Nasdaq reshuffles tech divisions post-Adenza
Adenza is now fully integrated into the exchange operator’s ecosystem, bringing opportunities for new business and a fresh perspective on how fintech fits into its strategy.
This Week: HKEx's new derivatives platform; GoldenSource; Quonian-SimCorp, and more
A summary of some of the latest financial technology news.
Chris Edmonds takes the reins at ICE Fixed Income and Data Services
Edmonds is now leading ICE’s fixed income and data business as the rush to provide better data and analytics in fixed income builds.
Deutsche Börse democratizes data with Marketplace offering
Deutsche Börse Group is set to unveil its Marketplace, a one-stop data shop designed to simplify and streamline data acquisition and consumption for its clients, while also surfacing data from across the firm to its own users. Jan Stiebing and Sven…
DSB says industry is ready to meet UPI mandate ahead of deadline
The Unique Product Identifier will be required for certain OTC derivatives in the EU at the end of April, following US adoption in January.
Mapping a successful data journey: strategy, execution and sustainability
A well-planned data journey can positively impact an organization’s long-term trajectory. However, it is important to have clarity not only in the strategy but also in successful execution and sustainability for the long haul, argues data veteran Subbiah Subramanian.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs