Tokyo Stock Exchange (TSE)

History of the Tokyo Stock Exchange :

The Tokyo Stock Exchange was created in 1878, when a period of industrialization in Japan had created a need for its own exchange. In response to WWII, there was a reorganization of the Japanese stock markets in 1943. Eleven stock exchanges in Japan, including the Tokyo Stock Exchange, were combined to form the Japan Securities Exchange, which was partially run by the government. Due to air raids on Japan, the stock market was closed in 1945 from August to December. Japan's stock markets were reorganized again in 1949, when three exchanges were established in Tokyo, Osaka, and Nagoya. Six more, in Kyoto, Kobe, Hiroshima, Fukuoka, Niigata, and Sapporo were created within the next year. However, many of these exchanges either merged or closed over the years, leaving five current Japanese exchanges in Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo.

In 1969, the Tokyo Stock Exchange developed the Tokyo Stock Price Index (TOPIX). This index is calculated with all First Section Japanese common stocks and gives an overall indication of how well the stock market is performing. The stock exchange has calculated the TOPIX every minute since 1987.

The Tokyo Stock Exchange closed its trading floor in 1999 to replace it with a fully electronic system. This move was made as many world exchanges were beginning to go electronic and it was seen as a way to improve the efficiency and increase competitiveness of the Tokyo Stock Exchange.