Address

Precise Investors

Sunday, June 20, 2021
Stocks & Shares

TSE CEO to step down over October system failure

Tokyo Stock Exchange

Koichiro Miyahara will be replaced by Akira Kiyota, the head of Japan Exchange Group Inc

The head of the Tokyo Stock Exchange (TSE) will step down over a system failure last month, the bourse’s operator said on Monday, after the disruption halted trading for an unprecedented full day and drew a rebuke from Japan’s financial regulator.

Koichiro Miyahara, the TSE’s president and chief executive, will resign from his post and will be replaced by Akira Kiyota, the head of Japan Exchange Group Inc, which owns the exchange.

At a news conference, Kiyota apologised over the outage, which he called a “major inconvenience”.

Japan’s financial regulator said it had issued a business improvement order to both the TSE and Japan Exchange Group over the disruption.

The outage on Oct. 1 cast a shadow on the exchange’s credibility as Prime Minister Yoshihide Suga prioritised digitalisation, and dented Tokyo’s hopes of boosting the country’s standing as a global financial centre.

The all-day trading halt at Tokyo bourse significantly undermines investors’ trust, the Financial Services Agency said in a statement, noting the exchange needs to clarify where responsibility lies.

Financial regulators last month conducted an on-site inspection on the exchange to investigate the causes behind the outage.

The all-day trading halt was the worst-ever outage since the world’s third-largest equity market switched to all-electronic trading in 1999. The exchange previously said the glitch was the result of a hardware problem at the bourse’s “Arrowhead” trading system and a subsequent failure to switch to a back-up.

The exchange had also said a newly formed committee would draw up fresh guidelines by next March on how to restart trading following a system failure.

Important:

The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

1 + nine =