The Tokyo Stock Exchange (TSE/TYO) is the third-largest stock exchange in the world by aggregate market capitalization of its listed companies. It is also the largest stock exchange in all of Asia.
In Japan, it is often referred to simply as Tōshō (東証), but its formal name is Tōkyō Shōken Torihikijo (東京証券取引所).
Currency
The currency for this exchange is the Japanese yen (JPY). Click to see the current USD/JPY exchange rate.
Ownership
The Tokyo Stock Exchange is owned by the Japan Exchange Group, Inc.
The merger with the Osaka Securities Exchange was approved in July 2012, and the resulting entity was the Japan Exchange Group, Inc.
The TSE is incorporated as a kabushiki gaisha (”stock company”). It has nine directors, four auditors, and eight executive officers. Prior to 2001, the exchange was instead structured as a shadan hōjin, a type of incorporated association.
Hours
Operating hours:
- 08:00 to 11:30 am
- 12:30 to 05:00 pm
Trading sessions:
- 09:00 to 11:30 am
- 12:30 to 03:00 pm
Closed on Saturdays and Sundays, and on holidays as declared by the exchange in advance. Please note that most of these holidays are strictly Japanese holidays, such as Coming of Age Day, National Foundation Day, Vernal Equinox Day, Shōwa Day, Constitution Memorial Day, Greenery Day, Children’s Day, Marine Day, Respect for the Aged Day, Autumnal Equinox Day, Health and Sports Day, Culture Day, Labour Thanksgiving Day, and The Emperor’s Birthday.
The sections
- First Section is for large companies. It was created when the exchange was re-established after WWII.
- Second Section is for mid-sized companies. It was created in 1961.
- Mothers is for high-growth startup companies. It was created in 1999.
- TOKYO PRO Market is for smaller, less viable companies. It was established in 2009 jointly with the London Stock Exchange.
Indices tracking the TSE
The main indices tracking the TSE:
- Nikkei 225
- TOPIX
- J30
History of the Tokyo Stock Exchange
The 19th century
Tokyo Kabushiki Torihikijo (東京株式取引所) was established on May 15, 1878, and trading commenced on June 1. The exchange was established under the direction of Finance Minister Ōkuma Shigenobu and capitalist advocate Shibusawa Eiichi.
The first half of the 20th century
In 1943, as Japan was embroiled in WWII, the stock exchange in Tokyo was combined with ten other stock exchanges in major Japanese cities to form a single Japanese Stock Exchange, the Nippon Shōken Torihikisho (日本証券取引所). Shortly after the nuclear bombing of Nagasaki, this exchange was shut down and reorganized.
A few years after the end of the war, the Tokyo Stock Exchange reopened under its current name Tōkyō Shōken Torihikijo (東京証券取引所) on May 16, 1949. Japan now had a new Securities Exchange Act.
The second half of the 20th century
The 1980s was a period of extreme growth and capitalization for major Japanese companies. The TSE runup from 1983 to 1990 was astonishing, and by 1990 the TSE accounted for more than 60% of the world’s total stock market capitalization.
On April 30, 1999, the TSE trading floor was closed down to switch the exchange from manual to electronic trading for all transactions.
TimeLine
Tokyo Stock Exchange (東証) Timeline
From Meiji-era foundation to the asset bubble, arrowhead engine & market restructuring
Under the leadership of Finance Minister Ōkuma Shigenobu and capitalist pioneer Shibusawa Eiichi, the exchange is founded in the Nihonbashi-Kabutochō financial district, opening for trade on June 1.
Eleven Japanese exchanges are consolidated into the semi-governmental Japan Securities Exchange (日本日本証券取引所). Trading is suspended in August 1945 following the atomic bombings and Allied occupation.
Rebuilt under American GHQ guidance modeled on the US Securities Exchange Act of 1934, the Tokyo Stock Exchange formally resumes operations as a membership organization.
The Tokyo Stock Price Index (TOPIX)—a free-float adjusted capitalization-weighted index tracking all domestic First Section companies—is officially launched with a base value of 100.
Driven by rapid asset inflation, the Nikkei 225 hits its historic intraday peak of 38,957.44 and the TSE briefly becomes the world’s largest stock market by total market capitalization.
The iconic physical trading floor is permanently shut down, transitioning all stock transactions across all market sections to fully automated electronic order execution.
The TSE demutualizes from a non-profit member association to a for-profit commercial entity: Tokyo Stock Exchange, Inc. (株式会社東京証券取引所).
The TSE deploys its custom Fujitsu-developed ultra-low latency trading platform arrowhead, reducing order processing latency below single milliseconds to handle modern algorithmic and high-frequency trading.
The Tokyo Stock Exchange and the Osaka Securities Exchange complete a historic merger, creating Japan Exchange Group (JPX)—unifying equity trading on the TSE and derivatives on the OSE.
The legacy 1st Section, 2nd Section, Mothers, and JASDAQ divisions are replaced by three streamlined segments: Prime (global institutional), Standard (mid-cap), and Growth (high-growth emerging tech).
Propelled by corporate governance reforms (such as TSE directives pushing companies trading below 1.0x P/B to improve capital efficiency), the Nikkei 225 surpasses its 1989 bubble-era high, crossing 40,000 points.