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Stocks

50 brokers opposed TSE's nighttime trading plan

TOKYO -- About 50 Japanese securities companies expressed opposition to a plan to introduce nighttime trading on the Tokyo Stock Exchange, Nikkei Quick News learned Wednesday.

     The brokerages stated their opposition in documents submitted in February to Atsushi Saito, CEO of Japan Exchange Group, or JPX, operator of the Tokyo bourse; and Yusuke Kawamura, deputy chairman of Daiwa Institute of Research. The TSE responded by forming a 19-member study group to discuss whether to proceed. Kawamura heads that panel.

     Debate within the study group appears to be deadlocked, though the TSE maintains there are no clear objections to the idea.

     The panel has held five meetings so far and will draw up a report in August. 

     The brokerages argued that the plan will make it difficult to form fair share prices because nighttime trading will draw fewer investors than daytime trading. They also said the plan needs to be approached with more caution, given that adopting the new hours would significantly change the market environment.

     Online brokers, in contrast, generally welcome the plan.

     Takashi Hibino, president of Daiwa Securities Group, said in June that the brokerage was against the plan because investors generally have little need to trade at night. Still, it is possible that some of the brokerages who opposed the plan in February have since changed their attitudes. 

     JPX plans to reach a decision on the plan after studying a report to be submitted by the study group. Some market players say it may be difficult for the members to reach a unified view.

(NQN)

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