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Warmest
greetings for the New Year.
The securities market in our country is arriving at a turning point towards becoming a "truly profound market."
The business performance of listed companies as a whole has recovered,
the international competitiveness of the Japanese economy has once
again been recognized at home and abroad, and our base of investors
has been on an expansionary course. These factors have all contributed
to the market showing the most activity since it was established,
with daily trading value sporadically exceeding 3 trillion yen since
last fall.
This improvement in liquidity has been the result of a consistent
pattern of movement from savings to investment. Several advances
in structural reform in financial and securities markets as well
as a revision of the securities tax code have been achieved, and
the numerous people who support the securities market have made
many enthusiastic efforts to take advantage of these changes. As
the market organizer, this year we will resolutely strive to proactively
implement reforms while preserving faith in the market's operation
in an effort to ensure the viability of this trend.
Foremost for this year, we will devote our full efforts into regaining
and increasing the trust of people both domestically and abroad
in the system infrastructure that supports market transactions.
Last November, share trading was suspended for three hours due to
system irregularities, and again in December, system irregularities
caused a mishandling of an incorrect order input. These occurrences
caused a great inconvenience to investors and other involved parties.
The executives and employees of TSE strongly reaffirmed that providing
investors with an opportunity for stable transactions is the pillar
of the responsibility held by an organizer entrusted with the central
market. In both the structure for overall system operation management
and in market administration, we are committed to ensuring the prevention
of a reoccurrence of these types of situations.
Also, firmly establishing the trend of savings to investment requires
ensuring a fair and transparent market, as well as the provision
of attractive investment products.
As the self-regulating institution closest to the market, TSE is
making earnest efforts towards managing market quality, such as
working to prevent unfair transactions before they happen. We are
also redoubling efforts in ensuring the properness of listed companies'
information disclosure and improving their corporate governance.
By doing this, TSE is aspiring to cultivate an environment in which
the market function of providing attractive investment products
and realizing the most appropriate distribution of capital is properly
manifested.
Furthermore, as we contemplate the arrival of an aging society
and declining birthrate, the necessity for each individual citizen
to manage their assets and build up their estate over the course
of their entire lives is increasing.
Against this backdrop, disseminating the knowledge necessary for
investment in securities is becoming an unavoidable issue, and we
at the TSE are devoting our efforts in establishing securities education
mainly through our "TSE Academy" program. By doing so,
we are continuing to promote the expansion of a sound base of a
wide array of investors.
This is a year in which TSE will make a fresh start from the beginning,
and we must make it a year in which we take the first steps toward
becoming a market that will live up to the task of playing the central
role in the investment-centered financial system that is to come.
We are committed to constantly being aware of the perception our
market users have, and to effectively responding to the trust they
place in us. At the same time, we are striving to increase the market's
international competitiveness, and solidify our position as the
core market in the Asia region by aspiring to be a bridge between
businesses and investors. We kindly ask for your support and cooperation
in this endeavor.
Tokyo Stock Exchange, Inc.
Taizo Nishimuro
Chairman of the Board
President/CEO
