May 26, 2024

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Tokyo Stock Exchange Trading Is Halted by System Problem

The Tokyo Stock Exchange halted all stock trading for Thursday’s session owing to a program dilemma, a rare glitch that marketplace individuals explained could undermine rely on in the exchange.

Following trading was halted for the early morning session, the exchange explained at midday that no trading would choose position for the rest of the day. It later explained it expected to resume usual trading Friday.

It blamed the shutdown on faulty hardware involved in transmitting cost info and explained the change to backup hardware didn’t choose position appropriately, leaving the marketplace unable to perform.

A spokesman for the exchange’s operator,

Japan Exchange Team Inc.,


8697 -one.84%

explained it didn’t see symptoms of hacking. In August, a cyberattack from overseas brought about four days of shutdowns at New Zealand’s stock marketplace.

The Tokyo dilemma was found out at about seven a.m. community time, two several hours ahead of the stock marketplace usually opens.

“We apologize to traders and marketplace individuals for resulting in disruption,” the exchange explained in a assertion.

It explained Thursday’s dilemma marked the to start with time an complete day of stock trading was halted given that the exchange moved to a totally computerized trading program in 1999.

Ichiro Yamada, government officer for securities expenditure at Fukoku Mutual Daily life Insurance, explained the exchange should reveal obviously what brought about the trading halt.

“Otherwise, rely on in the marketplace could waver,” he explained.

The Osaka stock exchange remained open and futures charges tied to the benchmark Nikkei stock index were up, suggesting traders didn’t foresee a important disruption that would injury stock charges total. Mr. Yamada explained a marketplace halt could hurt shorter-phrase traders, but very long-phrase traders this sort of as Fukoku wouldn’t be impacted by a couple days of suspension.

Even though the Tokyo Stock Exchange has had glitches in excess of the yrs that impacted some trading, a finish halt to stock trading is strange.

In January 2006, the exchange shut down all trading for the ultimate twenty minutes of the day after a surge of provide orders overcome the program. In November 2005, a computer failure shut the exchange for most of a day.

Takeo Kamai, head of execution expert services at CLSA in Tokyo, explained if markets opened abruptly and computer trading packages issued a significant volume of piled-up orders, it could trigger temporary disruption.

“I just believe there’s heading to be pent-up demand from customers,” he explained, although he extra it could be a 1-off event.

The stock exchange explained it made a decision not to try to restart its units throughout trading several hours on Thursday for worry of resulting in confusion.

Publish to Suryatapa Bhattacharya at [email protected] and Kosaku Narioka at [email protected]

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Appeared in the Oct one, 2020, print version as ‘System Problem Halts Tokyo Investing.’