Will the black swan come to Japans stock market after vacation and resume trading?

category:Finance
 Will the black swan come to Japans stock market after vacation and resume trading?


On October 1, Japans stock market, which was normally open for trading, suffered a sudden change. In early morning trading, Japan exchange group, the operator of the Tokyo Stock Exchange, said in a statement that it had suspended trading in all securities because of network problems that prevented it from accepting orders. Nikkei 225, a stock index of 225 varieties on the Tokyo Stock Exchange, naturally entered the market.

The Tokyo Stock Exchange recently said it would resume normal trading from October 2. On October 1, the SSE held a press conference at 16:30 local time (15:30 Beijing time). The failure of the Tokyo Stock Exchange was caused by the equipment of the trading system, and the shared disk a of the stock exchange had a memory problem.

JPX plans to replace hardware and restart the system on October 1, aiming to resume normal trading on October 2.

Trading orders on October 1 are invalid and new orders will be accepted on October 2. The price after the restart of trading will be the same as the closing price on September 30.

//Review of Dongzheng stock exchanges failure events//

Around 9:00 a.m. local time, the Japanese stock exchange group issued three announcements in succession, announcing that it would stop all stock trading on the Tokyo stock exchange due to the failure of the trading information transmission system. The market information that has been issued on that day is invalid, and it is uncertain when to resume trading.

Due to the hopeless system repair, after 11:30 a.m., the Japanese exchange group issued a fourth announcement announcing the cancellation of one day trading.

According to media reports here, the system of the Tokyo Stock Exchange failed in the call auction stage before the opening of the trading day, leading to the inability to calculate various stock price indexes, including the Nikkei stock index and the Tokyo stock index, and forced to stop trading before the opening.

The Tokyo Stock Exchange and Fujitsu, the developer of trading systems, are still investigating the cause of the failure. This is the Tokyo Stock Exchange since November 2005 due to system failure to stop trading again. After the last system failure, the morning trading stopped completely, and the afternoon trading was reopened after troubleshooting.

//Who are the people of the exchange? / /

According to public information, the Tokyo Stock Exchange is one of the Japanese stock exchanges, abbreviated as Dongzheng. Although the history of Tokyo Stock Exchange is not long, it is one of the largest stock exchange centers in the world. Tokyo Stock Exchange, together with Osaka stock exchange and Nagoya Stock Exchange, is one of the three largest stock exchanges in Japan. Its market size ranks the fourth in the world and is also the most important economic center of Japan. The market value is second only to the New York Stock Exchange, NASDAQ Stock Exchange and London Stock Exchange.

Wind data shows that there are 3709 listed companies on the stock exchange, of which 3682 shares are trading normally recently. Based on the closing price on September 30, the total market value of all listed companies is 43.46 trillion yuan (RMB, the same below). Among them, there are 92 companies with a market value of 100 billion yuan, of which the largest is Mizuho Financial Group, with a total market value of 2.14 trillion yuan, followed by 8 companies with a market value of more than 500 billion yuan, including Toyota Motor, Softbank and Sony.

//Stock markets in many countries have experienced system failures//

Industry insiders believe that frequent technical risks will reduce the credibility of the exchange, and investors may choose to stay away and choose other exchanges. Maintaining the security of trading is one of the core competitiveness of the exchange.

In February this year, Toronto Stock Exchange, the worlds eighth largest stock exchange, suddenly announced the suspension of stock trading due to technical problems. TMX group, the parent company of the Toronto Stock Exchange, announced on social media that due to the failure of the order system, the Toronto Stock Exchange, the growth enterprise market and the alpha trading system have stopped trading. Investors cannot submit, adjust or cancel existing orders. After troubleshooting, investors will be given sufficient trading time to adjust orders.

The Singapore Exchange has also experienced a number of system failures. On July 14, 2016, due to a serious system failure, the Singapore exchange closed earlier than two hours after trading on that day. In November 2014, SGX suspended trading for nearly 3 hours due to UPS failure. After that, SGX delayed the opening of trading system due to software upgrade.

Indias second largest exchange, Bombay Stock Exchange, also suffered a network failure on the morning of July 3, 2014 and was forced to suspend trading, the second system outage in a month. In June 2014, the exchange also encountered a technical failure, resulting in nearly one hour of real-time data blank. In August 2013, there was a serious technical failure in NASDAQ Exchange, which led to a complete paralysis of stock trading on this exchange. Listed companies including apple, Google and Microsoft had to stop trading. In the three hours that it was unable to trade, the failure froze the market value of more than $5.7 trillion. At that time, there were various statements pointing to the causes of IT technology failure and high-frequency trading. Wind integrated Xinhua news agency, China Foundation news, etc. source: Wind Information Editor: Yang Bin_ NF4368

Indias second largest exchange, Bombay Stock Exchange, also suffered a network failure on the morning of July 3, 2014 and was forced to suspend trading, the second system outage in a month. In June 2014, the exchange also encountered a technical failure, resulting in nearly one hour of real-time data blank.

In August 2013, there was a serious technical failure in NASDAQ Exchange, which led to a complete paralysis of stock trading on this exchange. Listed companies including apple, Google and Microsoft had to stop trading. In the three hours that it was unable to trade, the failure froze the market value of more than $5.7 trillion. At that time, there were various statements pointing to the causes of IT technology failure and high-frequency trading.

Wind integrated Xinhua news agency, China Foundation news, etc