United Japan Exchange prepares for New Year debut
The creation of a new united bourse for Japan, called the Japan Exchange Group, has come one step closer with the final approval of Japan’s Financial Services Agency for the listing of JPX stock on the Tokyo bourse this week.
Formed from the Osaka Securities Exchange and the Tokyo Stock Exchange, JPX will commence operations as a fully merged company under its new name on 1 January 2013. The combination of the two exchanges has been underway for much of the past 12 months; the merger is expected to provide new opportunities from the integration of cash equities and derivatives onto the same bourse.
JPX is also an attempt by the two primary exchanges to fend of competition from competitors such as Chi-X Japan and SBI Japannext, which have eaten away at their market share. The TSE’s market share was 94.66% in November 2010; one year later that had fallen to 89.12%. SBI Japannext is currently the largest alternative market in Japan at 3.95% market share, followed by Chi-X Japan with 2.30%, according to figures provided by Thomson Reuters.