Tokyo Stock Exchange Trading Is Halted by System Problem

The Tokyo Stock Trade halted all stock investing for Thursday’s session due to a program difficulty, a scarce glitch that current market members explained could undermine have faith in in the exchange.

Just after investing was halted for the early morning session, the exchange explained at midday that no investing would get spot for the rest of the working day. It later explained it predicted to resume regular investing Friday.

It blamed the shutdown on faulty components associated in transmitting price tag information and facts and explained the change to backup components didn’t get spot appropriately, leaving the current market not able to purpose.

A spokesman for the exchange’s operator,

Japan Trade Team Inc.,

8697 -one.84%

explained it didn’t see signals of hacking. In August, a cyberattack from abroad prompted four days of shutdowns at New Zealand’s stock current market.

The Tokyo difficulty was identified at about seven a.m. regional time, two hours ahead of the stock current market commonly opens.

“We apologize to traders and current market members for triggering disruption,” the exchange explained in a assertion.

It explained Thursday’s difficulty marked the initially time an whole working day of stock investing was halted considering that the exchange moved to a entirely computerized investing program in 1999.

Ichiro Yamada, govt officer for securities investment decision at Fukoku Mutual Everyday living Insurance policy, explained the exchange really should make clear plainly what prompted the investing halt.

“Otherwise, have faith in in the current market could waver,” he explained.

The Osaka stock exchange remained open and futures price ranges tied to the benchmark Nikkei stock index were up, suggesting traders didn’t foresee a significant disruption that would injury stock price ranges over-all. Mr. Yamada explained a current market halt could damage quick-expression traders, but lengthy-expression traders such as Fukoku wouldn’t be afflicted by a couple days of suspension.

While the Tokyo Stock Trade has had glitches in excess of the a long time that afflicted some investing, a entire halt to stock investing is unconventional.

In January 2006, the exchange shut down all investing for the last 20 minutes of the working day soon after a surge of provide orders overcome the program. In November 2005, a pc failure shut the exchange for most of a working day.

Takeo Kamai, head of execution services at CLSA in Tokyo, explained if markets opened abruptly and pc investing systems issued a substantial volume of piled-up orders, it could result in temporary disruption.

“I just think there’s likely to be pent-up demand from customers,” he explained, while he additional it could be a a single-off function.

The stock exchange explained it determined not to test to restart its techniques for the duration of investing hours on Thursday for dread of triggering confusion.

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

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Appeared in the October one, 2020, print edition as ‘System Dilemma Halts Tokyo Investing.’

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