• Kyodo

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Tokyo Stock Exchange Inc. said Tuesday it will again consider extending its trading hours, shorter than those of some other major global markets, beyond 3 p.m. to increase convenience for investors.

A working group comprising securities houses and institutional investors will discuss extending the market close for the equities spot market and plans to compile a report on its conclusion in October, the bourse said.

The Tokyo bourse currently operates for five hours from 9 a.m. with an hourlong lunch break, shorter than the New York Stock Exchange’s 6½ hours and the London Stock Exchange’s 8½ hours.

The world’s third-largest bourse with around 3,700 listed companies is seeking to attract more investors and regain trust after an unprecedented all-day system outage last year.

The TSE has discussed longer hours twice since 2000 to attract foreign investors located in different time zones, amid intensifying competition with other bourses.

But securities houses that offer face-to-face transaction services have expressed concern about increased costs, while online brokerages, used by many retail investors, were supportive in previous discussions, according to the TSE.

As extended hours would be beneficial in the event of a suspension triggered by a system failure, the working group will also discuss how to shorten the time required to resume trading, as well as the impact of opening the market during long holidays.

Investors were concerned about missing out on trading opportunities when the closure of the market for Japan’s Golden Week break in 2019 was extended to 10 days to celebrate the new emperor’s enthronement.

Osaka Exchange Inc. and Tokyo Commodity Exchange Inc. said separately the same day they will start trading derivatives on holidays from September 2022.

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