The Tokyo Stock Exchange is to begin calculation of a TOPIX ex-financials index from the beginning of September..In January this year it was announced that the TSE and the Osaka Securities Exchange were to unite under the banner of the Japan Exchange Group.
As the name of the new index suggests, it takes the TOPIX index and carves out the constituent elements of banks, securities, commodities futures, insurance, and other types of financing businesses.
The index terms will be backdated to 1993 with a base value of 1000. Information vendors and securities companies receive the price return index data via the market information system.
Currently there are no exchange-traded funds (ETFs) that specialise in Japanese financial institutions, although iShares does offer a product linked to the broader TOPIX index.
In order to be permitted to use the new index in order to create ETFs, the Tokyo Stock Exchange is inviting institutions to apply to them for a licence.