Fund market is much older than the global currency market, so the organizations working on it – stock exchanges – have a rich experience of formation and formation of their positions. At the moment, the second place in the list of the largest stock exchanges is occupied by Tokyo Stock Exchange, the birthplace of which is Japan. The most interesting thing is that just half a century ago, there was no formal stock exchange in Japan – all securities transactions were made not on stock exchanges, but between specific investors and owners of shares and bonds.
The history of the Tokyo Stock Exchange began in 1878. Since then, it has changed owners and locations more than once.
The first owners of the Tokyo Stock Exchange were two partners – Japanese Finance Minister Okuma Shigenobu and lawyer Shibasawa Eichi. With the move to the new building in the mid-1990s, the circle of owners was slightly expanded, but still remained limited. But the stock exchange itself ceased to be the only one – by the beginning of the Second World War 11 stock exchanges were functioning in the country, which later became part of the first Tokyo Stock Exchange. However, during the Second World War and it closed – the building of the Tokyo Stock Exchange was occupied by the American military. Although securities trading continued, however, it was spontaneous – the deals were not public and were not made on stock exchanges.
Tokyo Stock Exchange rebirth falls on the period from 1983 to 1990 – during this time about 60% of the world stock market was represented on the Tokyo Stock Exchange floor. From the leading position Tokyo stock exchange was pushed back by competitors from New York, however, below the second point of its position did not fall so far.
Since 1999, the Tokyo Stock Exchange has switched to electronic systems. The essence of the latter is that brokers place orders that are executed at the moment when the price of the order to buy and sell coincides. At the same time there is a constant control of stock price fluctuations on the stock exchange – during the day the stock price can rise or fall only within a certain percentage. Otherwise, in case of abrupt price fluctuations violating the market stability, the exchange stops trading on such shares for a certain period of time.
To date, there are 2,276 companies listed on the Tokyo Stock Exchange, including 30 international companies. Securities market participants in Japan can be divided into the following categories:
1. Regular members are companies that carry out transactions either in their own interest or in the interest of customers.
2. Saytori members are intermediaries working with regular members
3. Special members – companies that follow orders that cannot be executed on regional stock exchanges
Non-banking securities companies.
What directly concerns the structuring of shares, there are three sections: Section one, Section two and Mothers. Mothers is an abbreviation of Market of the High-Growth and Emerging Stocks – the section where fast-growing companies are presented, the Second section – for new stock exchange participants. The first section has the most stringent listing requirements and includes the companies with the most capitalisation. Participants are allocated by section on an annual basis and decisions are made regarding the transfer of shares between sections.