Tokyo’s stock exchange faced the worst situation since it completely shifted to electronic trading in 1999, as system errors knocked out the world’s third-largest bans for a full day and threw investment strategies into chaos. .
Thursday’s shutdown, which fell on an important day of economic data release and portfolio rebalancing, affected more than 2,500 stocks listed on the exchanges run by the Japan Exchange Group. The company is Asia’s largest operator in terms of market capitalization of listed companies.
The exchange was announced shortly before the market opened at 9 am. Later it was said that this bandh would last all day.
The outage – the first to affect all listed shares on the TSE in 2005, the last part of the day – also hit exchanges in Nagoya, Fukuoka and Sapporo, a similar underlying cash equity trading system created by technology group Fitsu. Use. However, it was unclear whether the problem arose from a separate data management system that was not designed by Fujitsu.
A Fujitsu spokesman told reporters that the company was investigating. A JPX spokesperson said it denied hacking or cyber attacks.
Japan’s chief cabinet secretary, Katsunobu Kato, said it was “highly regrettable” to reduce investment opportunities.
Trading in derivatives continued normally on the Osaka Exchange, which is owned by JPX, but depends on different systems.
JPX said it is not known if trading could resume on Friday, with leading brokers and market strategists predicting deeper volatility when it eventually resumes. JPX halted activity on its platform TOSTNT for off-auction transactions, and said it would announce plans to resume it later on Thursday.
A spokesperson for Nomura, Japan’s largest brokerage, said it was taking customer orders but warning them that trades could not go through.
The TSE faced a series of embarrassing glits in the mid-2000s, but was relatively stable since 2010, when it introduced Fujitsu’s “Arrowhead” trading system. The last time it was forced to suspend all share trading was in 2005.
There is a day that comes when equity volumes will traditionally be higher, brokers said. October 1 is the first day of the new fiscal quarter and the second half of Japan’s fiscal year. This means that funds are often active as they adjust portfolio weights.
The Bank of Japan also released its closely watched Tanken survey, a quarterly report that investors use to gauge the mood and outlook of companies. The tanker, which should have been released before trade commenced, showed that the perception among Japan’s major manufacturers is improving less quickly than expected.