The Tokyo Stock Exchange is planning to nearly double its trade capacity by the end of the year. That was announced one day after the embarrassment of the market being forced to close early because its computers could not cope with a flood of orders to sell shares. It came as Japan5;s Economics and Financial Services Minister Kaoru Yosano urged the Tokyo exchange to quickly solve the problems.
He said: “I want it known that the existence of the stock exchange will be in question if trade does not work.” Tokyo, which is the world’s second largest stock exchange, has upgraded its systems three times in the past year, but not enough to cope with surging trade volume. It is a victim of its own success having put a lot of effort into attracted new investors.
There has been rise in online trading by individual investors and substantial growth in orders from outside Japan. The Tokyo exchange says it wants to increase its daily processing capacity to as much as eight million trades, from the current limit of 4.5 million.