The Tokyo Stock Exchange, part of the Japan Exchange Group, is the primary capital market in Japan and has three listing groups:

• First Section: large companies
• Second Section: mid-sized companies
• Mothers: market of the high-growth and emerging stocks

For more information on listing requirements, see the Listing Requirements page.

The Tokyo Stock Exchange uses a next-generation trading system called 'arrowhead', originally introduced in 2010. For more information, see the arrowhead and ToSTNeT page.

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Currency: Japanese Yen (JPY)
Time Zone: UTC +09:00

Exchange Holidays
Trading Hours

• TSE Limit Buy/Sell/Short (DAY and IOC)
• TSE Market Buy/Sell/Short (DAY and IOC)
• TSE Limit on Open (LOO) Buy/Sell/Short (DAY)
• TSE Market on Open (MOO) Buy/Sell/Short (DAY)
• TSE Limit on Close (LOC) Buy/Sell/Short (DAY)
• TSE Market on Close (MOC) Buy/Sell/Short (DAY)
• CHIJ Limit Buy/Sell/Short (DAY and IOC)
• SBIJ Limit Buy/Sell/Short (DAY and IOC)

• Chi-X Japan
• SBI Japannext

• Lot Size: set by the listed company and as a result there is no cohesive definition. However, individual trade units are defined in the exchange's Daily Report.
• Tick Size: found in official Tick Size tables in the respective venues: CHI-X, SBI, and TSE.
• Short Sale Rules: short sell orders must be marked. Naked short selling is prohibited. Short sales are subject to an uptick rule where the price of the security must be 1 tick higher than the last sale price.
• Circuit Breakers: the TSE has Special Quote Parameters in place, which serve to minimize price jumps. In addition, they apply Daily Price Limits to stocks, which, once reached, cannot be exceeded.

TSE opening and closing prices, as well as the initial price after a trading halt and following a special quote, are determined using the 'Itayose' and 'Zaraba' methods, which are described on the Transaction Methods page.

The opening auction occurs at 09:00:00 (morning session) and 12:30:00 (afternoon session) with the matching of all orders entered prior to the auction being matched using the Itayose method. Orders can be entered only after 08:00:00.

Normally, the closing auction execution follows the Itayose method where all orders reaching the order book are treated as simultaneous orders; in other words, there is no time priority. Bids and offers are matched at a single price according to the principle of price priority. Orders are executed as follows:

• All market orders
• All limit orders to sell/buy at prices lower/higher than the execution price
• The entire amount of either all sell or all buy orders at the execution price

Occasionally, there is a large volume of orders on either side of the order book which prevents the condition for Itayose method where all market orders and bids and offers at better prices must be executed. In this case, TSE uses a special mechanism with relaxed conditions for closing auctions at the limit price to determine the closing price of the afternoon session.

• All market orders are treated as limit orders at the daily limit price.
• In the case of a closing auction at the upper daily limit price, if there is a sell order of at least one trading unit, the allocation by the “closing auction at the limit price” will take place. In the case of a closing auction at the lower limit price, there must be a buy order of at least one trading unit at the lower daily limit price.

Order Allocation

Because all market orders and orders at the daily limit price are treated as orders at the same price with no time priority, there is no clear order priority. Orders are allocated 1 unit (in this case, 100 shares), each in turn to securities companies in descending order of total number of shares placed per securities company.

For example, closing at the limit price:

This is an example of the book before the closing auction. Suppose the daily lower limit price is 498. Due to large sell sentiment in the market, there are excessive sell orders on the book. In other words, there’s no price where the aggregate of sell and buy order amount inverses. Itayose method does not apply as we cannot find a price level where all limit orders priced better than the selected price will be executed. We use Closing at the Limit Price mechanism, and treat the 1000 share market sell order and 100 share market buy order as limit order priced at the daily lower limit 498. The closing price is set at the daily lower limit 498. The executed amount is 3000 shares (aggregate total buy order). The executed shares will be allocated to all security companies 1 unit at a time in the order of aggregate order size per company until all shares are allocated.

Auction Periods

The morning closing auction is scheduled at the end of morning session (11:30). Market, Limit, Limit to Market On Close (Funari), and Limit on Close orders are accepted until the beginning of the auction.

The afternoon closing auction is scheduled at the end of the afternoon session (15:00). Market, Limit, Limit to Market On Close (Funari), and Limit on Close orders are accepted until the beginning of the auction.

Order Types

Limit Order with TIF set to DAY

Market Order with TIF set to DAY

Market On Close Order - JAPN Gateway

Limit on Close order: such order will be executed only during either the morning closing auction or the afternoon closing auction. If the order was sent with instruction to be executed during the morning closing auction and wasn’t executed, the order will not be brought over to the afternoon session. The validity period for a TSE order is 1 Day, so if an order is not executed in the afternoon closing auction, it will become void.

Limit to Market for Close order (Funari order): Limit orders that are effective until the end of the the auction session. If they are not executed during continuous trading, they become market orders during the closing auction of the morning or afternoon session.

For more information on the auction mechanisms on the TSE, see the Transaction Methods page.

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