The Tokyo Stock Exchange became a target of criticism after the “crash” but did not publish information to retail investors soon.
|The “floor collapse” has damaged investors’ confidence in the Tokyo Stock Exchange in the context of Tokyo’s ambition to become an international financial center. Photo: AFP|
For the first time in history, STokyo stocks had to close all day trading (October 1) due to systematic errors, according to Nikkei Asia Review.
Worth mentioning, this stock exchange discovered a hardware problem at 7:00 am 1/10, but only contacted brokers until 8:00 am and asked to refuse to receive trading orders. Until 8:39 on the same day, this unit announced the postponement of trading orders to the public and this information was only published on the website of the unit.
At the press conference on the afternoon of October 1, Hiroki Kawai, CEO in charge of securities transactions The Tokyo Stock Exchange explained that, if we try to quickly get the stock exchange back to the same day, it will not be able to conduct trading smoothly and steadily, “so we think it’s best to reopen in. October 2 “.
By early in the morning on October 2, the Tokyo Stock Exchange announced that trading activities would return to normal during the morning session and that indirect trading orders would also be re-established.
The way to handle the problem above caused the Tokyo Stock Exchange to face a wave of criticism about its ability to handle the crisis and, more broadly, Tokyo’s ambition to become an international financial center.
First, the Tokyo Stock Exchange argued that the cause of the problem went far beyond “the problem of the market information supply system”. Providing information, even only a part of the assessed information, is essential and helps investors to better judge when the transaction is done online again. However, the Tokyo Stock Exchange did not give any specific explanation to the public until the press conference held at 4:30 p.m. on October 1, citing unclear information about dislike. well suited.
Meanwhile, in the midst of the incident, the Tokyo Stock Exchange was still in contact with stockbrokers and exchanged information. Although it is known that institutional investors need more information about the incident than individual investors, what causes individual investors to criticize the lack of publicly available information on the Tokyo Stock Exchange, Even answering to the most important question is when the transactions are started again.
“We took some time to investigate the cause,” said Koichi Miyahara, chairman and CEO of the Tokyo Stock Exchange. “We believe we delivered the information (about the incident – Editor) quickly, but we received criticism that we were too slow (disclosure – Editor).”
According to a senior official of the Japan Financial Services Regulatory Authority, the market halt all day is a “serious problem”, saying: “We must be vigilant until delivery. Translation is confirmed again. “
The Japanese government and the ruling Liberal Democratic Party gave a lackluster view of the incident. Commenting on the incident, Hakubun Shimomura, Chairman of the Liberal Democratic Party’s Policy Research Council, said: “It’s a pity that investors’ trading opportunities are limited.”
And Taro Kono, Japan’s Minister of Public Administration Reform, replied to the press: “With digitization and online transaction functions, convenience and security are two sides of the same issue.” “If you cannot guarantee 100% security, then you need to find ways to improve your resilience,” added Taro Kono.
The “floor collapse” has damaged investors’ confidence in the Tokyo Stock Exchange in the context that Japan is trying to attract foreign investors and its ambition to become an international financial center. Analysts say that any attempt to attract investors into the market will need the support of a stable trading system.
In the past, the Tokyo Stock Exchange experienced technical problems due to programming errors and affecting investors’ trading for half a day in November 2005. One month later, the system on the Tokyo Stock Exchange also “stuck” the error and prevented Mizuho Securities from deleting an incorrect and costly order.
With yesterday’s incident on October 1, “traces indicate system memory problems”, Tokyo Stock Exchange’s chief information officer, Ryusuke Yokoyama, confirmed at a press conference on October 1 afternoon. Ryusuke Yokoyama said that during the monitoring of the network there is no sign of an anomaly of a cyber attack.
When asked about the cause of the backup system of the Tokyo Stock Exchange not working, although the regular test results show that the system is still working properly, Mr. Ryusuke Yokoyama explained: “We have transferred the records. “Information technology and communication solutions company Fujitsu for analysis, but this unit did not find the root cause”.