Tuesday, December 7

Tokyo Stock Exchange resumes, opens up after outage debacle


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TOKYO — The Tokyo Stock Exchange (TSE) resumed normal trading on Friday as planned, opening slightly higher a day after the worst-ever outage brought the world’s third-largest equity market to a standstill.

The glitch was the result of hardware problem at its “Arrowhead” trading system, and a subsequent failure to switch to a back-up, the bourse said on Thursday.

It caused the first full-day suspension since the exchange switched to all-electronic trading in 1999.

The outage came on a day of high anticipated trade volume following the release of the Bank of Japan’s closely watched tankan corporate survey and a rise on Wall Street.

The meltdown also occurred just two weeks into new Prime Minister Yoshihide Suga’s term – during which he has prioritized digitalisation – and undermined Tokyo’s hopes of replacing Hong Kong as an Asian financial hub.

Officials from the Tokyo Stock Exchange and Japan Exchange Group Inc, which runs the bourse, apologized for the debacle on Thursday and said the fundamental cause was still unknown.

The system’s developer, Fujitsu Ltd, also apologized and said any findings would be disclosed through the exchange. It declined to comment on any compensation issues, while TSE Chief Executive Officer Koichiro Miyahara said the bourse had no plans for now for any compensation claims, taking “Full responsibility” for the shutdown.

Shares in Fujitsu were roughly flat, down 0.4%, while Japan Exchange Group was up 0.3%. (Reporting by Chang-Ran Kim, Makiko Yamazaki; Editing by Sandra Maler and Stephen Coates)



financialpost.com