Osaka Securities Exchange
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The Osaka Securities Exchange Co., Ltd. (株式会社大阪証券取引所 Kabushiki-gaisha Ōsaka Shōken Torihikijo?, OSE) (Hercules: 8697) is the second largest securities exchange in Japan, in terms of amount of business handled. The Nikkei 225 Futures, introduced at the Osaka Securities Exchange in 1988, is now an internationally recognized futures index. In contrast to the Tokyo Securities Exchange, which mainly deals in spot trading, the Osaka Securities Exchange’s strength is in derivative products today OSE is the leading Derivatives Exchange in Japan and it was the largest futures market in the world in 1990 and 1991. According to statistics from 2003, the Osaka Securities Exchange handled 59% of the stock price index futures market in Japan, and almost 100% of trading in the options market. Osaka Securities Exchange Co., which listed on its Hercules market for startups in April 2004 is the only Japanese securities exchange which went public on its own market.
In July 2006 OSE launched their newest futures contract the Nikkei 225 mini which is one tenth of the size of the original Nikkei 225 Futures contract and highly popular among Japanese individual investors.
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[edit] History
The birthplace for futures transactions: "Dojimakomekaisho" The origin of securities exchanges stems from Edo Period, when the exchange for rice & crop was established in Osaka, center of Japanese economy. Each prefecture set up its own warehouses in Osaka for shipping & preservation of their rice (to be taxed by the government), and sold them to merchants. One of the most famous merchants was "Yodoya", which was based upon the southern part of Yodoyabashi area. Some other merchants gradually gathered to create one market. This market was called "Yodoya-Komeichi", which was the first securities exchange in the nation.
Later on, this market was moved to Dojima in 1697, so-called "Dojimakomekaisho", which was a physical market to trade in rice-tickets or physical rice. In 1716, Cho-gomai transaction was introduced and recognized by the government in 1730, which is said to be the origin of futures transactions in Japan.
[edit] Chronology
- Jun. 1878 - Osaka Stock Exchange Co., Ltd. established
- Jun. 1943 - The Exchange became the Osaka Division of the Japan Securities Exchange during the Pacific War.
- Aug. 1945 - Japan Securities Exchange suspended operations
- Apr. 1947 - Japan Securities Exchange dissolved.
- May 1948 - A new Securities and Exchange Law enacted
- Apr. 1949 - Osaka Securities Exchange established
- Jun. 1951 - Credit transaction system introduced
- Apr. 1956 - Bond market reopened
- Oct. 1961 - Second section for stocks established
- May 1970 - Convertible bond market opened
- Oct. 1973 - The Exchange became an associate member of the Federation Internationale des Bourses de Valeurs (FIBV)
- Sep. 1974 - Computerized Market Information System began operation
- Apr. 1982 - Constitutional restrictions on the membership of foreign securities companies removed
- Jun. 1983 - The Exchange became a member of EASEC (EAOSEF in 1990: East Asian and Oceanian Stock Exchanges Federation)
- Nov. 1983 - "Special Designated Issues" System, called "New Second Section", introduced
- Dec. 1984 - Ten Minute Earlier Opening System for representative issues selected from among the first section stocks introduced
- Jun. 9, 1987 - Trading in "Osaka Stock Futures 50 (OSF50)" started
- Sep. 1988 - Trading in Nikkei Stock Average Futures (Nikkei 225 Futures) started
- Oct. 1988 - Computer-assisted trading system for OSF50 and Nikkei 225 Futures began operation
- Jun. 1989 - Trading in Nikkei Stock Average Options (Nikkei 225 Options) started
- Dec. 1989 - Computer-assisted trading system for Nikkei 225 Options began operation
- Mar. 1991 - Computer-assisted trading system for stocks began operation
- May 1991 - The Exchange became a member of the IAOECH (IOMA in 1993:lnternational Options Markets Association)
- Dec. 1991 - The country fund market opened
- Jan. 1992 - The Exchange recived a No-action Letter from US Commodity Futures Trading Commission (CFTC) for Nikkei 225 Futures contract
- Mar. 1992 - The "OSF 50" ceased trading in its futures contracts
(Trading of OSF 50 was ceased on Mar. 20, 1992.)
- Apr. 1992 - The Japan Securities Depository Centre (JASDEC), Osaka Office began its operation at the OSE
- Feb. 1994 - Trading in Nikkei Stock Index 300 Futures and Options (Nikkei 300 Futures / Options) started
- May 1994 - The Exchange recived a No-action Letter from US Commodity Futures Trading Commission (CFTC) for Nikkei 300 Futures contract.
- Oct. 1994 - The Exchange became an affiliate member of the International Organization of Securities Commissions (IOSCO)
- May 1995 - Trading in "Nikkei 300 Stock Index fund" started
- Jan. 1996 - "New Market", a system with "Issues listed under alternative listing criteria",introduced
- Apr. 1996 - Nikkei 300 Futures Inter-month Spread Trading started
- Oct. 1996 - Foreign stock market established
- May 1997 - Nikkei 225 Futures Inter-month Spread Trading started
- Jul. 1997 - Equity Options Trading started
- Dec. 8, 1997 - Trading floor for stocks closed and shifted completely to a computer assisted trading system
- Dec. 1997 - Cross Trading System (for large block trades, execution at closing price and basket trades) started
- Jun. 1998 - Trading in Sector Index Futures and Options started(Trading of these products was ceased on Nov. 30, 2000.)
- Dec. 1998 - New Market Section established
- Jan. 1999 - J-NET Market opened
- Mar. 1999 - The "Securities Transaction Tax" and "Exchange Tax" abolished
- Jun. 1999 - A license contract for the use of SPAN with Chicago Mercantile Exchange concluded
- Jul. 1999 - The Exchange obtained a No-Action Letter from the US Securities and Exchange (SEC) for Nikkei 225 Options, Nikkei 300 Options and Equity Options
- Jul. 1999 - Full computerization of trading at the OSE was completed
- Oct. 1999 - OSE ED-NET, an electronic disclosure network system established
- Nov. 1999 - A clearing organization method introduced
- Nov. 1999 - Non-Auction Large Block Trades for Stock Index Futures and Options started
- Dec. 1999 - An agreement to establish the NASDAQ Japan Market announced
- Feb. 2000 - Private Finance Initiative (PFI) market established
- May 2000 - Nasdaq Japan Market established
- Jun. 2000 - Trading on Nasdaq Japan Market started
[edit] See also
[edit] External links
- Website of OSE (both English and Japanese)
- Website of OSE Hercules Market (both English and Japanese)
