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Tokyo Stock Exchange to extend market closing time

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The Tokyo Stock Exchange, one of the world’s three largest stock markets, has decided to extend the closing time of the cash equities market by 30 minutes from 2024.

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According to the Nihon Keizai Shimbun on the 17th, the objective is to match the reorganization timeline of the trading system, set for 2024. An advisory body, the Market Steering Committee, will review the proposal by the end of this month. Subsequently, the Tokyo Stock Exchange will make a final decision. The Financial Services Agency will also have to approve the extension of the closing time. As a final note, if the decision takes place, it will be the first time in 70 years (since 1954).

There has been some criticism that with the stock market closing at 3p.m., corporate financial statements and information on large companies announced during the afternoon do often not properly reflect in the stock market the next day.

Opening the market during evenings or at night.

There have been various proposals to open the market in the evening or at night in order to increase the trading comfort of individuals and foreign investors and prevent them from leaving the foreign exchange market. The current opening hours of the Tokyo Stock Exchange are from 9am to 3pm. Excluding one hour for lunch, the total trading time is 5 hours.

Alternatively, the London Stock Exchange features an 8 hour and 30 minute session, while the New York Stock Exchange is 6 hours and 30 minutes. The Singapore Exchange trades six hours a day. The Korean Stock Exchange is open from 9 a.m. to 3.30 p.m.

As a global financial center, Tokyo seeks to strengthen its position. Despite this expansion, Tokyo’s opening hours will still be shorter than those of its rivals. More measures will be needed to ensure its competitiveness.

For MetaNews.

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Jonathan Hobbs

Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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