Tokyo Stock Exchange may extend trading hours-source

TOKYO, July 23 (BestGrowthStock) – The Tokyo Stock Exchange [TSE.UL]
is considering extending its trading hours as it seeks to attract
investors and stem a decline in its global competitiveness, a
person with knowledge of the matter said.

The exchange, the world’s second largest, may start the
trading day earlier and finish later, and is also considering
eliminating a break between the morning and afternoon sessions,
the person said, confirming a report in the Nikkei newspaper.

Establishing an evening session is another option, said the
person, who asked not to be identified because the discussions
have not been made public. The TSE declined to comment.

“In the U.S. and Europe there is no lunch break for stock
trading. There have been discussions over whether we should have
one considering (it goes against) the international standard,”
the person said.

Cash trading at TSE now starts at 9:00 a.m. (0000 GMT) and
ends at 3:00 p.m. with a lunch break between 11:00 a.m. and 12:30
p.m.

The move comes as Japan frets about its waning clout in Asian
financial markets as investors increasingly turn their attention
to China and other faster growing economies.

This year the TSE launched a super-fast trading system to
bring it up to speed with bourses in the United States and Europe
and attract more business from hedge funds and electronic
traders.

The Tokyo bourse has considered extending hours in the past
only to drop the idea amid opposition from traditional brokers
worried about the cost of upgrading systems and hiring extra
staff.

But extending hours could attract more people to the market.

“This would help make the Tokyo market a bit more lively, and
would especially help Internet securities and trading firms,”
said Kenichi Hirano, operating officer at Tachibana Securities.

“Businessman who really haven’t been able to do any stock
trading during the working day on the Internet now will be able
to do it during their lunch break. I think this is a plus.”

The exchange will start seeking opinions from the public next
week on the matter, and will ask a committee of about 20 composed
of institutional investors, corporate officials, brokerages and
banks to discuss the issue, the person said.

Derivatives trading hours are already longer than cash
trading and the TSE is also considering establishing night
trading for derivatives, the person said.

Investment Basics
(Reporting by Junko Fujita and Elaine Lies; Editing by Edwina
Gibbs)

Tokyo Stock Exchange may extend trading hours-source