PTS for Night Trading of Stocks in Japan: Significance and Issues
9 Pages Posted: 12 Mar 2007
Japan's first proprietary trading system (PTS) for listed stocks was established by kabu.com Securities, a leading online securities trading firm. This system, the opening of which was made possible by revisions to the Securities Exchange Law in 2004, uses the auction method of price formation, as does a traditional exchange. Other online securities firms are contemplating the opening of similar systems, although there is concern that if multiple systems compete for the same business, liquidity will be diffused and result in the failure of all.
Keywords: PTS, online, exchange
JEL Classification: G24, G18, K22
Suggested Citation: Suggested Citation