Govt Panel OKs TSE Reform Plans

Economy Politics

Tokyo, Dec. 25 (Jiji Press)--A Financial System Council working group adopted at a meeting Wednesday daft proposals for reforming the Tokyo Stock Exchange.

The proposals feature reorganizing the current four market segments of the largest cash stock exchange in Japan--the mainstay first and second sections of the TSE and the small-cap markets of Mothers and Jasdaq--into three, including a new segment called "prime," in the first half of fiscal 2022.

Tokyo Stock Exchange Inc. is expected to work out specific reform measures based on the proposals and announce the new stock trading system by February next year.

At the meeting, some members called on the TSE operator to publish notices of the reform in English for the sake of foreign investors.

As for the creation of the prime section, the working group of the Financial Services Agency's council, which advices the prime minister, proposed that companies to be listed have market capitalization of at least 10 billion yen and that the existing TOPIX index of all TSE first-section issues be transformed accordingly.

[Copyright The Jiji Press, Ltd.]

Jiji Press