Glitch halts Tokyo derivatives trading

The Tokyo Stock Exchange had to stop derivatives trading on Tuesday because of a computer glitch.

Story highlights

  • The Tokyo Stock Exchange stopped trading of derivatives on Tuesday morning
  • Latest in a series of glitches that have embarrassed Japan's largest exchange group
The Tokyo Stock Exchange stopped trading of derivatives on Tuesday morning, citing the latest in a series of technological glitches that have embarrassed Japan's largest exchange group.
The TSE blamed "systems problems" for the outage, which affected all trading of Topix futures, JGB futures and options from 9.18am local time. The exchange said trading would resume at 10.55am.
The glitch comes just six months after the TSE suffered a breakdown in its data distribution system that knocked out an entire morning's trading of stocks, at the height of the third-quarter reporting season.
The latest incident is particularly uncomfortable for the TSE, as it comes just weeks after it launched a tender offer for half of the shares in its rival, the Osaka Securities Exchange, in the first of a two-stage takeover. That deal would create the world's third-biggest exchange group by market capitalisation of listed companies, after NYSE Euronext and Nasdaq OMX.
After the February incident TSE president Atsushi Saito had his pay cut by 30 per cent for one month, while three other executives took a 20 per cent reduction. The suspension of transactions led to lost business worth about Y50bn ($640m), or 5 per cent of a day's worth of deals, according to internal estimates.
In February 2008, Mr Saito had his pay docked 10 per cent cut following the failure of a recently-installed derivatives platform that shut down trading for an afternoon's session.
The TSE is still embroiled in a High Court dispute with Mizuho Securities over a trading error in December 2005, in which a mis-typed sell order in recruitment firm J-Com caused a loss of Y40bn for Mizuho. That incident, combined with a total trading shutdown a month earlier, led to the resignation of then-president Takuo Tsurushima.