The Tokyo Stock Exchange (TSE) has begun trading of the SPDR S&P 500 Exchange Traded Fund (ETF) – the world's oldest and largest ETF by net asset value.
The fund, which is already listed on NYSE Arca and the Singapore Exchange, follows the underlying S&P 500 index, which consists of 500 large-cap equities listed on NYSE and Nasdaq. The index is a component of the leading economic indicators released by the United States Department of Commerce. Standard & Poor's Depositary Receipts (SPDR) is licensed for use by investment management firm State Street.
Koji Yamamoto, president and representative director of State Street Global Advisors Japan, the asset management business of global custodian State Street, expressed hope that the cross-listing of the original SPDR ETF on the TSE would increase awareness of ETFs in the investment community and increase the opportunities available to Japanese investors.
“As part of the TSE's continued effort to invigorate the ETF market in Japan, we are optimistic that the listing of the industry's first ETF will further boost the Tokyo market,” said Atsushi Saito, president and CEO of the TSE, which listed its 100th ETF, the Listed Index Fund Nikkei China Related 50, on 10 March 2011.
The exchange had previously set itself the goal of attaining 100 ETFs by the end of the 2010 fiscal year, which ended on 31 March 2011. Yasuyuki Konuma, the TSE listing department's director of business development, stated at the time that the TSE is keen to increase trading of ETFs.
Listing of securities across Asia and the US is creating an increasingly global market, with the potential for trading 24 hours a day. The Singapore Exchange lists American depositary receipts for US-listed Asian firms on its GlobalQuote board, allowing them to be traded in local market hours. The service has been available since October 2010.