The Tokyo Stock Exchange is considering cutting the salaries of its president and other executives over last week’s system glitch, which left dozens of brokerages temporarily unable to place orders, sources have said.
The TSE is looking to assign executive responsibility for the trading disruption, as it is expected to report preventive measures to the Financial Services Agency as soon as Tuesday, the sources said Saturday.
As part of steps to be newly introduced, the bourse plans to conduct an emergency drill with securities companies to ensure a swift coordinated response to problems such as a system glitch. The TSE is also considering introducing a system which can detect unexpected data.
An extraordinary amount of data from a brokerage crippled one of the TSE’s four data transmission lines last Tuesday.
Some securities houses were also unable to connect their trading systems to the remaining three lines after being directed by the TSE to do so.
As the system glitch left some 40 brokerages temporarily unable to place orders, compensation could be sought involving around 100,000 orders, or 1 percent of all orders that day.