Japan’s proprietary trading systems (PTSs) have reported record gains against the incumbent Tokyo Stock Exchange (TSE) and Osaka Securities Exchange (OSE), with the newcomers achieving a market share of 7.62% between them on 12 January 2012.
Japanese PTS SBI Japannext said it had accounted for 4.57% market share that day, surpassing the venue’s previous record of 4.01%. Figures for Chi-X Japan were not available, but total market share for the period 1 – 11 January stood at 3.31% for SBI Japannext and 2.64% for Chi-X Japan, according to data provided by Thomson Reuters Equity Market Share Reporter.
On 12 January 2012, SBI Japannext traded US$19.4 million in Mitsubishi UFJ Financial Group shares, US$15.4 million in Nissan shares and US$14.6 million in Japan Tobacco, its three top stocks. By comparison, Chi-X Japan traded US$9.8 million in Mitsubishi UFJ Financial Group, US$7.4 million in Toyota Motor Corporation and US$7.1 million in Japan Tobacco, its own top three stocks.
The top three Japanese shares traded on the TSE were Komatsu, Japan Tobacco and Takeda Pharmaceuticals, with the TSE trading US$222 million, US$217 million and US$153 million respectively.
The TSE still held 90% Japanese market share in December 2011, followed by the OSE at 4.7%, SBI Japannext at 2.9% and Chi-X Japan at 2.2%, according to Thomson Reuters. However, this compares with TSE market share of 93.7% and OSE market share of 4.9%, in December 2010. Competition from PTSs has been widely cited as one of the motivating factors behind the upcoming merger between the Tokyo and Osaka exchanges, which is expected to take place in January 2013, subject to regulatory approval. The TSE-OSE deal would create the world’s third-largest stock exchange, after the US’s NYSE Euronext and Nasdaq OMX.