Tokyo Stock Exchange
Japan’s principal regulated securities exchange and the central cash-equity marketplace of the Japan Exchange Group.
Last updated October 27, 2026
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Overview
The Tokyo Stock Exchange, commonly abbreviated as TSE or Tōshō, is Japan's principal securities marketplace and one of the world's major stock exchanges. It is headquartered in the Nihonbashi-Kabutochō financial district of Tokyo and provides regulated markets for listed Japanese and international companies, as well as venues connected with bonds, exchange-traded products and derivatives. The exchange is operated by Tokyo Stock Exchange, Inc., a wholly owned subsidiary of Japan Exchange Group (JPX), the listed holding company created through the integration of the former Tokyo Stock Exchange Group and Osaka Securities Exchange. The institution originated on May 15, 1878, when the Tokyo Kabushiki Torihikijo was established under the direction of Finance Minister Ōkuma Shigenobu, with support from industrialist and financial modernizer Shibusawa Eiichi. Trading began on June 1 of that year. During the Second World War, Tokyo's exchange was consolidated with eleven regional exchanges into the Japan Securities Exchange. That organization ceased operations in August 1945. The postwar Tokyo Stock Exchange reopened on May 16, 1949, under the new Securities Exchange Act and became the central venue for Japan's rapidly developing capital markets. The exchange's scale expanded dramatically during Japan's high-growth and asset-price bubble periods. Between 1983 and 1990, the market's global importance increased to the point that the TSE represented more than half of worldwide equity market capitalization at its peak. The collapse of Japan's bubble economy then caused a severe decline in share prices, trading value and relative global ranking, but the exchange remained the country's dominant public-equity marketplace. TSE market structure has changed repeatedly. Earlier divisions included the First and Second sections, Mothers for emerging and high-growth companies, JASDAQ, and TOKYO PRO Market. On April 4, 2022, these arrangements were reorganized into Prime, Standard and Growth markets. Prime is intended primarily for companies with substantial liquidity and stronger international investor access; Standard serves established companies with broader eligibility; and Growth is designed for companies with high growth potential but less mature operating histories. TOKYO PRO Market remains a professional-investor-focused venue. Technology has been central to the exchange's modern development. The physical trading floor was closed in April 1999 as the TSE completed its transition to fully electronic trading. The TSE Arrows visitor and market-information facility opened in 2000, and the Arrowhead trading system was introduced in 2010. The exchange has also experienced serious technology and operational incidents, including a 2005 system failure, an order-entry disruption in 2018 and a full-day suspension on October 1, 2020. These events reinforced the importance of resilience, capacity planning, controls for erroneous orders and reliable backup systems. Today, the Tokyo Stock Exchange's importance extends beyond order execution. Its listing rules, disclosure requirements, governance expectations, market data and benchmark-linked activity influence corporate finance and investor behavior throughout Japan. Major market indicators associated with securities traded on the exchange include TOPIX and the Nikkei 225, although the latter is selected and maintained by Nikkei rather than by the exchange itself. Through JPX, the TSE forms part of an integrated Japanese market infrastructure that also includes Osaka Exchange and related clearing, settlement and data services.
History
The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo Kabushiki Torihikijo. Its creation formed part of Japan's Meiji-era effort to build modern financial institutions and mobilize capital through securities markets. Finance Minister Ōkuma Shigenobu directed the project, while Shibusawa Eiichi was a prominent advocate of the capitalist and institutional framework supporting it. Trading started on June 1, 1878. During the Second World War, the Tokyo exchange was combined with eleven other regional exchanges into the Japan Securities Exchange. That centralized organization closed in August 1945. The postwar exchange reopened on May 16, 1949, under legislation establishing a new framework for securities trading. It subsequently became the dominant venue for Japanese corporate equities and an important market for bonds and related instruments. The TSE underwent major institutional and technological changes during the late twentieth century. It was reorganized as a joint-stock company in 2001, replacing its former incorporated-association structure. The exchange's current building opened in 1988. Its physical trading floor was closed in 1999 as all transactions moved to electronic systems, and the TSE Arrows facility opened in 2000. The Arrowhead trading platform followed in 2010, supporting higher-speed electronic trading. The exchange grew to extraordinary global prominence during Japan's asset-price boom. By 1990, it accounted for more than 60 percent of global stock-market capitalization according to historical descriptions of the market. The subsequent collapse of Japanese equity and property prices sharply reduced the exchange's capitalization and international ranking, although it remained the country's leading exchange. A major structural turning point came with the creation of Japan Exchange Group. The integration of Tokyo Stock Exchange Group with Osaka Securities Exchange began after regulatory approval in 2012, and JPX launched on January 1, 2013. Tokyo Stock Exchange, Inc. became an operating subsidiary of the new holding company, while Osaka Exchange continued as the group's derivatives-focused exchange. The TSE has therefore operated since 2013 within a broader exchange and clearing ecosystem rather than as an entirely independent corporate group. The exchange has repeatedly revised its market segments to reflect changes in issuer size, liquidity, governance and investor access. Earlier segments included the First and Second sections, Mothers, JASDAQ and TOKYO PRO Market. On April 4, 2022, the principal structure was replaced by Prime, Standard and Growth. The reform was intended to make the market's purposes clearer and to encourage listed companies to meet more meaningful standards relating to liquidity, governance and sustainable public-market participation. Operational resilience has been an important part of the TSE's history. A 2005 transaction-system defect caused a major interruption, while the Mizuho Securities J-Com order incident that year highlighted shortcomings in erroneous-order controls and cancellation procedures. A 2018 gateway failure caused delays for several brokerage firms. On October 1, 2020, a market-information-system fault and unsuccessful failover to backup equipment halted all cash-equity trading for a full day. These incidents led to scrutiny of system design, testing, capacity, communications and business continuity. Despite such disruptions, the TSE remains Japan's principal public-equity venue and a significant global source of listed-company finance, market data and benchmark activity.
- 2023
Capital-efficiency disclosure initiative begins
[7]TSE requested that Prime and Standard companies address the cost of capital and stock price through analysis, disclosure and continuing investor dialogue.
- 2023
Carbon Credit Market opens
[8]TSE launched a formal market for J-Credits on October 11, extending exchange infrastructure into environmental-market trading.
- 2022
Prime, Standard and Growth markets launched
[6]TSE completed its transition to the new general-investor market structure on April 4.
- 2020
Arrowhead system failure
[9]A hardware and failover failure halted all TSE cash-equity trading on October 1, leading to regulatory orders and recurrence-prevention reforms.
- 2013
Japan Exchange Group integration
[13]The integration of Tokyo Stock Exchange and Osaka Securities Exchange created the Japan Exchange Group operating structure.
- 2012
TOKYO AIM becomes TOKYO PRO Market
[5]The professional-investor market was renamed TOKYO PRO Market, with TSE continuing to operate it under the J-Adviser framework.
- 2009
TOKYO AIM established
[5]Tokyo Stock Exchange Group and London Stock Exchange created TOKYO AIM as a professional-investor market for growth companies.
- 2000
TSE Arrows opens
[2]TSE Arrows opened at the former trading-floor site as a market-information and public-facing facility.
- 1999
Traditional trading floor closed
[2]TSE ended floor trading on April 30 as electronic trading and automated market infrastructure became the dominant operating model.
- 1969
TOPIX inaugurated
[1]The Tokyo Stock Price Index, later known as TOPIX, was launched and became a major benchmark for Japanese equities.
Products and positioning
A central, highly regulated Japanese capital-markets infrastructure provider serving listed companies, domestic and international investors, securities firms, market-data users and professional investors.
Equity market · 2022
Prime Market
The Prime Market is TSE’s principal venue for companies with sufficient scale and liquidity to attract many institutional investors. Its positioning emphasizes higher governance quality, constructive dialogue with investors and sustained improvement in corporate value. Prime-listed companies are expected to provide timely disclosure and engage with domestic and global shareholders. The market replaced the former First Section as part of the April 2022 market restructuring.
Equity market · 2022
Standard Market
The Standard Market serves companies that have an appropriate level of public-market liquidity and meet baseline governance expectations. It is designed for established businesses that may not fit the scale or investor-orientation profile of the Prime Market but still seek broad public ownership, continuous disclosure and access to equity capital.
Equity market · 2022
Growth Market
The Growth Market is intended for companies with high potential for future expansion but comparatively greater uncertainty in business performance and operating history. Its framework places importance on business plans, progress disclosure and communicating the path toward growth. It replaced the principal functions of the former Mothers and JASDAQ growth-oriented venues.
Professional-investor equity market · 2009
TOKYO PRO Market
TOKYO PRO Market is a market for specified and professional investors. It has no equivalent numerical requirements for shareholder count, tradable shares or profit that apply to the general-investor markets, and listing examination is performed by an exchange-approved J-Adviser. The model is intended to give growth companies a more flexible route to public-market financing while limiting direct trading access primarily to professional investors and non-residents.
Equity index · 1969
TOPIX
TOPIX is TSE’s best-known broad Japanese equity benchmark. Introduced in 1969, it has developed into a major reference index for portfolio management, exchange-traded products, derivatives and analysis of the Japanese stock market. TOPIX is part of a wider family of sector, size, thematic and market-segment indices calculated and distributed through the JPX ecosystem.
Listed investment product
Exchange-traded funds
TSE lists a broad range of exchange-traded funds, including products linked to Japanese and overseas equity indices, bonds, commodities, currencies, sectors and themes. ETFs provide intraday exchange trading while offering diversified exposure through a listed structure. TSE supports listing, trading, disclosure and market-information functions for these products.
Listed investment product
REIT and infrastructure-fund markets
TSE provides listing and trading venues for Japanese real-estate investment trusts and infrastructure funds. These products allow investors to obtain listed exposure to income-producing property portfolios or infrastructure assets while using exchange-based price discovery, disclosure and settlement arrangements.
Environmental-market product · 2023
Carbon Credit Market
The Carbon Credit Market is a formal TSE market for carbon credits, initially including J-Credits approved under Japan’s government crediting scheme. It was developed from a METI-supported technical demonstration project and opened on October 11, 2023. The market is designed to standardize trading and settlement, publish reference prices and support the development of Japan’s carbon-pricing and decarbonization infrastructure.
Market-information service
Market data and indices
TSE and associated JPX entities distribute real-time and historical market data, reference prices, company information, trading statistics and index values. The product ecosystem includes TOPIX, TSE market-segment indices, REIT and infrastructure-fund indices, sector indices and data services for financial institutions, listed companies, researchers and technology providers.
Trading service
ToSTNeT
ToSTNeT is TSE’s off-auction trading system for negotiated and special-terms transactions, including large blocks and other trades that require execution outside the regular auction market. It complements continuous auction trading and supports institutional, corporate and other market participants under exchange rules.
Controversies
2020
Arrowhead cash-equity trading system failure
On October 1, 2020, a hardware failure and unsuccessful switchover to a backup device prevented market-information distribution and stopped trading in all listed issues for the entire day. The failure damaged confidence in the resilience of Japan’s electronic-market infrastructure. TSE apologized, published an investigation and improvement program, and participated in regulatory follow-up that included Financial Services Agency business-improvement orders.
Marketing campaigns
- 2023Action to Implement Management that Is Conscious of Cost of Capital and Stock Price
Japan · Prime Market · Standard Market
TSE asked Prime and Standard companies to analyze their cost of capital, profitability and market valuation, disclose improvement plans and maintain dialogue with investors. The initiative was framed as a continuing corporate-value and governance effort rather than a directive to use a particular financial measure such as buybacks or dividend increases.
Outcome. TSE began publishing disclosure-status lists in January 2024 and updated its guidance in April 2026.
- 2023Carbon Credit Market launch
Japan
TSE converted a METI-supported carbon-credit technical demonstration into a formal market for J-Credits. The initiative sought to create standardized trading, transparent reference prices and settlement infrastructure for environmental credits.
Outcome. The market opened on October 11, 2023, with 188 registered participants reported at the opening.
- 2022New Market Structure
Japan · Prime Market · Standard Market · Growth Market
TSE launched the Prime, Standard and Growth markets after reviewing the inherited market structure. The campaign positioned the new segments as clearer venues with differentiated purposes for investors and listed companies.
Outcome. The transition was completed on April 4, 2022.
Brand decisions
2023
Launch the Carbon Credit MarketProduct launchBackground
Japan’s GX policy and the government’s carbon-pricing agenda created demand for a regulated venue offering standardized carbon-credit trading and public price discovery.
Action taken
TSE opened the Carbon Credit Market on October 11, 2023, initially covering J-Credits and using experience gained from a prior technical demonstration project.
Aftermath
The market expanded TSE’s infrastructure role into environmental markets and supported the development of Japan’s decarbonization and emissions-trading ecosystem.
2022
Reorganize cash-equity markets into Prime, Standard and GrowthGeneration changeBackground
The previous First Section, Second Section, Mothers and JASDAQ structure was considered difficult for investors to interpret and insufficiently effective at encouraging sustainable corporate-value improvement.
Action taken
TSE replaced the general-investor market structure with Prime, Standard and Growth on April 4, 2022, while continuing TOKYO PRO Market as a professional-investor venue.
Aftermath
The new structure created differentiated market concepts and became the framework for subsequent listing, governance and issuer-engagement initiatives.
2020
Strengthen trading-resumption and system-resilience proceduresStrategyBackground
The October 1, 2020 arrowhead failure exposed weaknesses in hardware failover, operational checks and the rules governing market suspension and resumption.
Action taken
TSE and JPX established investigation and recurrence-prevention bodies, improved fail-safe procedures and developed rules for resuming trading after a system failure, including the possible use of a controlled system reboot.
Aftermath
The exchange introduced clearer resilience and recovery processes and received regulatory business-improvement orders requiring corrective action.
Recent events
- Unconfirmed
Tokyo Stock Exchange president steps down and successor takes over[16]
Reported:
Koichiro Miyahara stepped down as president and chief executive of the Tokyo Stock Exchange, and Japan Exchange Group head Akira Kiyota took over as head of the exchange. The article links Miyahara's departure to the prior month's system failure.
Tokyo Stock Exchange trading outage[17]
Reported:
Trading on the Tokyo Stock Exchange halted for the day after an unanticipated hardware failure and the failure of a backup device prevented data transmission.
Kioxia files for planned $3.6 billion IPO[18]
Reported:
A regulatory filing showed that Kioxia Holdings planned to list on the Tokyo Stock Exchange on October 6 in an IPO worth up to $3.6 billion. The planned listing would allow Bain Capital to make a partial exit.
Sources18 sources
- 1Tokyo Stock Exchange history before JPXjpx.co.jp
- 2History of the TSE trading floorjpx.co.jp
- 3TSE board of directors and executive officersjpx.co.jp
- 4Domestic equity market overviewjpx.co.jp
- 5TOKYO PRO Market overviewjpx.co.jp
- 6New market structure beginsjpx.co.jp
- 7Action to implement management conscious of cost of capital and stock pricejpx.co.jp
- 8Carbon Credit Market openingjpx.co.jp
- 9October 1, 2020 equity-trading system failure reportjpx.co.jp
- 10Financial Services Agency business-improvement orders following system failurejpx.co.jp
- 11TOPIX and JPX indices lineupjpx.co.jp
- 12Number of listed companiesjpx.co.jp
- 13Japan Exchange Group integrationjpx.co.jp
- 14Reorganize cash-equity markets into Prime, Standard and Growthjpx.co.jp
- 15Strengthen trading-resumption and system-resilience proceduresjpx.co.jp
- 16东京证券交易所总裁离任并由继任者接任livemint.com
- 17东京证券交易所交易中断scrippsnews.com
- 18铠侠提交计划融资36亿美元的IPO文件financialpost.com
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