Tokyo Stock Exchange Vision 2001

Unrivalled developments in information and communication technologies have powered the development of borderless economic and financial activities, ultimately redrawing the landscape of the securities markets. Domestic markets have been forced to look beyond national boundaries and consider the needs of global investors, leading to concerted efforts to optimise function and competitive strength as these markets face up to the reality of increasing international competition. It is against such a backdrop that the trend of alliances between key exchanges, such as witnessed in Europe last year, has been accelerating.

We here at Tokyo Stock Exchange (TSE) have implemented a number of reforms in our efforts to provide investors, listed companies and securities companies with a safe, efficient and reliable market on which they can depend. As investors are being increasingly selective in terms of the markets they choose, TSE is committed to not only maintaining its established position as the central market within Japan, but also to confirming its position as the key market within the Asian region. The motto for this coming year, 'the next step', is reflected in the following goals for the year.

Firstly, TSE will work to foster the relationships formed with Asian stock exchanges and fulfil its role as a trusted partner, while working to establish a solid competitive foundation and the basis of a mutually beneficial model.

Secondly, TSE will continue to maximise its range of attractive investment products by nurturing the Mothers market, and introducing new products such as REITs and a variety of index-based products. Rigorous examinations will ensure the quality and reliability of these products.

Thirdly, TSE will continue to work towards creating a safe and highly reliable settlement system to meet global standards. To this end, we look forward to introducing DVP settlement for equities and other initiatives to optimise our settlement system.

Finally, as information creation and provision is playing an increasingly central role in stock exchange operations, TSE will continue its efforts to broaden the range of its information provision services, as well as the creation of flexible and responsive systems.

These are just a few of the initiatives that will be put into action in the coming year. Given the speed of change around us we will be called upon to react and act with ever greater alacrity. While continuing to formulate the most appropriate organisation style for TSE to adopt in order to be able to respond to the ever-changing needs of the market, we will devote ourselves to providing a highly liquid, equitable market with the competitive strength to prevail in the global marketplace.

Let me close by hoping that we may rely on you to lend your support and cooperation to us in these efforts.

Masaaki Tsuchida

President & CEO

Tokyo Stock Exchange