PTS for Night Trading of Stocks in Japan: Significance and Issues

9 Pages Posted: 12 Mar 2007

See all articles by Sadakazu Osaki

Sadakazu Osaki

Nomura Institute of Capital Markets Research

Abstract

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

Osaki, Sadakazu, PTS for Night Trading of Stocks in Japan: Significance and Issues. Nomura Capital Market Review, Vol. 9, No. 4, 2006. Available at SSRN: https://ssrn.com/abstract=968522

Sadakazu Osaki (Contact Author)

Nomura Institute of Capital Markets Research ( email )

Urbannet Otemachi Building
2-2-2, Otemachi, Chiyoda-ku
Tokyo, 100-8130
Japan

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