Tokyo Stock Exchange Extends Trading Hours
The Tokyo Stock Exchange (TSE) has extended its daily trading hours by 30 minutes, marking the first such extension in 70 years. This change aims to improve the exchange's ability to handle system glitches and potentially increase trading volume.
Morning session: 9:00 AM - 11:30 AM
12:30 PM - 3:30 PM
Previously, the afternoon session closed at 3:00 PM. This extension brings the TSE's total daily trading time to five and a half hours.
The decision to extend trading hours was prompted by a major system failure in October 2020, which forced the TSE to suspend trading for the entire day. The additional 30 minutes are expected to increase the chances of resuming normal trading before the closing bell even after a system disruption.
The TSE hopes that the extended hours will also lead to an increase in trading volume. However, some industry experts remain skeptical, as the new hours are still shorter than those of other major global exchanges.
The longer trading hours may prompt some companies to delay the announcement of their financial statements. The TSE has urged listed companies to disclose important information promptly, but companies often prefer to release such information after the market closes to minimize potential negative impacts on their share prices.
Overall, the extension of trading hours represents a significant change for the TSE. While the potential benefits remain to be seen, the move reflects the exchange's commitment to improving its resilience and competitiveness in the global market.