History

• A securities system was created in the 1870s that prompted a request to install a public trading option. In response, the Tokyo Stock Exchange was created in 1878 under the supervision of Okuma Shigenobu, the Minister of Finance. Except for a brief period of closure during World War II, it has been operating since that time. In 1999 the stock trading floor was closed and the TSE switched to an entirely electronic trading system.
  
  

Location and Hours

• The TSE is located at 2-1 Nihombashi Kabutocho, Chuo, Tokyo. It's considered a "kabushiki kaisha"---which literally translated means "stock company." Its normal working hours are from 9 a.m. to 11 a.m. and 12:30 p.m. 3 p.m. Japan Standard Time (JST) on weekdays. It's closed on weekends and national holidays. There are hours designated for certain commodities: Japanese Government Bonds (JGB) are usually traded from 1 p.m. to 1:30 p.m., whereas foreign currency bonds are traded between 1:30 p.m. to 2 p.m.
  
  

System

• As of 2009, the TSE reports to be involved in the trading of over 2,400 domestic companies and 30 foreign companies. The companies are split into three groups: the First Section for large corporations, the Second Section for smaller and mid-sized companies, and the "Mothers"---startup companies with rapid growth. The TSE is tracked by the Nikkei 225 index (companies chosen by the Japan Ecomonic Times), the TOPIX index (a conglomeration of share prices from the First Section corporations), and the J30 index.
  
  

Problems

• The TSE came under scrutiny twice in 2005, first when a computer malfunction forced the exchange to close after only 90 minutes, and again when the Mizuho Financial Group accidentally sold 6,100 shares of the company J-Com for one yen apiece (instead of one share at 6,100 yen.) Another mishap occurred in 2006 when prosecutors raided the Internet company "livedoor," which triggered a selling craze that prompted the TSE to raise the maximum daily selling limit.
  
  

Investing in the TSE

• It's possible to invest in the TSE even if you don't live in Japan. You can either use information gathered by a financial advisor, or research Japanese companies that are traded on your own. Your request to trade must go through a stockbroker who will transfer the request to a TSE member. Due to the time difference there's the possibility a price quote will change by the time it's processed.