TSE has calculated its non-consolidated financial results for the first half of the fiscal year ending in March 2003. 18.051 billion yen in operating revenue, 1.590 billion yen in operating profit, 3.247 billion yen in current profit, and 2.315 billion yen in net income were recorded between April and September of this year.
Within operating revenue, trading participants' dues and fees fell 571 million yen from the similar period last year to 9.374 billion yen this year due to a realignment of trading participants and a decrease in market conditions over the period. Furthermore, although new issuings and new listings were lower than last year they were more or less off-set by fees received from the new listings of REITs and ETFs, allowing income from listing fees to remain approximately unchanged at 4.229 billion yen. Finally, TSE's information services enjoyed increased activity over the period and income from these information services increased by 135 million yen from last year's similar period to 3.410 billion yen for this period.
As a result of these operations, TSE booked a non-consolidated operating revenue of 18.051 billion yen for the six months ended on September 30, 2003, which represents a decrease of 449 million yen from the same period last year.
Compared to last year operating costs fell 1.222 billion yen to 16.461 billion yen, reflecting TSE's efforts to curb expenditures as outlined in it Interim Business Plan. First, personnel costs decreased 310 million yen to 4.978 billion yen as a result of a decrease in the number of personnel at TSE as well as a review TSE conducted on its personnel system. Property costs decreased by 227 million yen to 2.537 billion yen as a result of a decrease in rent for its building. Costs incurred from outsourcing decreased 213 million yen to 2.250 billion yen, and depreciation costs stayed at 2.725 billion yen due to a portion of TSE's planned equipment investment being put off until after October. Other costs, as a result of an across-the-board effort to reduce expenses, fell 230 million yen from the same period last year to 967 million yen.
As a result, TSE recorded a non-consolidated operating profit of 1.590 billion yen, up 774 million yen from the same period last year.
Current profit increased 2.257 billion yen to 3.247 billion yen due, in large part, to non-operating income of 1.5 billion yen received as dividends from TSE's subsidiary company, Japan Securities Settlement & Custody, Inc. (formerly known as Japan Securities Clearing Corporation).
Because of its effectiveness in reducing costs, TSE has revised the forecasts for this fiscal year that it announced after the first quarter. TSE now expects to record a current profit of 3.8 billion yen and a net profit of 2.7 billion yen, up from previous forecasts of 3.5 billion yen and 2.6 billion yen, respectively. As always, TSE will do its utmost to produce the best results possible.
Revisions to regulations regarding contingency plans for the final trading day for futures and options
TSE announced changes in its contingency plans for the final trading day for derivative products in June's board report. Having completed the necessary system revisions for these changes, TSE will now revise the necessary regulations as follows. Concerning TOPIX futures and options, TSE will first revise its regulations such that, when system error halts trading in index composite stocks, the special quotation (S.Q.) calculation day and option exercise date, as well as the final settlement day, can be postponed (clearing and settlement regulations, article 99). Also, in cases when, on the day following the final trading day for a particular contract month, equity trading is halted from the start until the end of the morning session, the settlement price of the final trading day will be used as the emergency settlement price for TOPIX futures trading when deemed necessary by TSE (guarantee money regulations, article 7).
Furthermore, TSE will make the necessary revisions to allow for, when the final day of trading for JGB futures has been postponed, special changes in the deadline to report the assignment of withholding taxes or exemption from such taxes for accrued interest on deliverable bonds and the selection of deliverable bonds (clearing and settlement regulations, article 86; articles 22 and 23 under similar rule). Also, when trading in TOPIX futures during on-auction trading on the final day of trading is halted due to system error, TSE will, during off-auction trading, temporarily abolish the 100 units trading requirement and allow trading within 5% above and below the theoretical price (special regulations for TOPIX futures trading, articles 12.2 and 12.4).
Finally, when deemed necessary by TSE, the automatic exercise of options will not be applied to trading in individual equity options and options on JGB futures (clearing and settlement regulations, article 66).
These revisions will be put into effect from December 1, 2002.
World Federation of Exchanges Amsterdam General Assembly
The 2002 General Assembly for the World Federation of Exchanges convened in Amsterdam from October 6th to the 8th. At this assembly, TSE President Masaaki Tsuchida was approved as WFE vice president and will serve along WFE and NYSE president Richard Grasso for two years.
The next WFE General Assembly is planned for October 13, 2003 in New York.
