Tokyo Exchange Lures Speed Traders With Cost-Cutting Plan
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The Tokyo Stock Exchange should further reduce price increments for the shares of its biggest listed companies to defend its market share, according to a research firm that found previous cuts lowered trading costs.
Japan Exchange Group Inc., the owner of the country’s largest trading venue, reduced tick sizes for members of the Topix 100 twice this year. That decision lowered transaction costs and improved price discovery without distorting trading behavior, the Capital Markets Cooperative Research Centre said in a statement. It has also allowed the exchange to increase its share of trading in Japan’s $4.4 trillion equity market, which is the world’s second largest, trailing only the U.S.