Securities trading - Japan

23.11.2018

Key market-tradable securities

Denomination currency

Maturity
profile

Interest
rate

Interest/Dividend
payment frequency

Place of settlement

Form

Daimyo bonds

JPY

Various

Fixed

Annual

Not applicable

Registered

Global bonds

JPY/Non-JPY

Various

Fixed

Semi-annual

DTC

Permanent global;
registered

Samurai bonds

JPY

Various

Fixed

Semi-annual

JASDEC

Book-entry or Physical (bearer); registered (immobilised)

Shogun bonds

Non-JPY

Various

Fixed

Semi-annual

Not applicable

Registered

Japanese Government Bonds (JGBs)

JPY

Various

Fixed a

Semi-annual

BOJ

Book-entry or Physical (bearer); registered (immobilised)

Treasury Discount Bills (TDBs)

JPY

2, 3, 6 or 12 months

-

-

BOJ

Book-entry

ETFs/REITs b

JPY

-

-

Semi-annual or annual

JASDEC

Book entry

Equities

JPY

-

-

Quarterly or
semi-annual

JASDEC

Book entry

a. For JGBs with a maturity of 15 years, the interest rate is Floating.

b. Exchange Traded Funds (ETFs) / Real Estate Investment Trusts (REITs).

Important note on registered JGBs

The BOJ upgraded its systems in 2016, and ceased to operate registered JGBs within the BOJNet system. Registered JGBs are accepted for physical registration via an account opening and application process. Since 2003, all newly issued JGBs have been in dematerialised (book-entry) form.

Trading platforms

Arrowhead

Arrowhead is the trading system developed by the TSE for the next generation cash market in order to meet the needs of investors with high speed order placement and execution processing and to respond to reductions in sizes of orders and rapid increases in the number of transactions. Arrowhead was enhanced in September 2015, and is used for auction trading of stock and corporate bonds of listed companies on the TSE.

Tokyo Stock Exchange Trading Network System (ToSTNeT)

ToSTNeT is an additional TSE facility that also supports off-hours trading that is, maximum 08:20 to 17:30 and for certain types of trade.

Board lots and odd lots

Odd-lot shares (that is, a quantity of stock smaller than the standard unit of trading (board lot), which in Japan is normally 1,000 or 100 shares at this moment, but consolidation into 100 share by 1 October 2018 is expected in the market), arise as a result of corporate action entitlements such as stock split, rights issues or exercise of conversion or warrant rights.