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Tokyo Stock Exchange Trading Is Halted by System Problem

The Tokyo Inventory Trade halted all stock investing for Thursday’s session thanks to a process issue, a unusual glitch that sector contributors stated could undermine trust in the exchange.

Just after investing was halted for the morning session, the exchange stated at midday that no investing would just take position for the rest of the working day. It later on stated it envisioned to resume typical investing Friday.

It blamed the shutdown on defective components involved in transmitting value facts and stated the change to backup components did not just take position appropriately, leaving the sector not able to operate.

A spokesman for the exchange’s operator,

Japan Trade Team Inc.,

8697 -1.eighty four%

stated it did not see indicators of hacking. In August, a cyberattack from abroad induced four days of shutdowns at New Zealand’s stock sector.

The Tokyo issue was identified at about seven a.m. regional time, two hours in advance of the stock sector usually opens.

“We apologize to buyers and sector contributors for resulting in disruption,” the exchange stated in a statement.

It stated Thursday’s issue marked the first time an whole working day of stock investing was halted due to the fact the exchange moved to a absolutely computerized investing process in 1999.

Ichiro Yamada, govt officer for securities financial commitment at Fukoku Mutual Lifetime Insurance policies, stated the exchange should make clear plainly what induced the investing halt.

“Otherwise, trust in the sector could waver,” he stated.

The Osaka stock exchange remained open up and futures prices tied to the benchmark Nikkei stock index were up, suggesting traders did not foresee a significant disruption that would hurt stock prices total. Mr. Yamada stated a sector halt could harm limited-expression traders, but extensive-expression buyers this sort of as Fukoku wouldn’t be afflicted by a couple of days of suspension.

While the Tokyo Inventory Trade has had glitches more than the a long time that afflicted some investing, a total halt to stock investing is unusual.

In January 2006, the exchange shut down all investing for the ultimate 20 minutes of the working day just after a surge of provide orders confused the process. In November 2005, a laptop or computer failure shut the exchange for most of a working day.

Takeo Kamai, head of execution providers at CLSA in Tokyo, stated if markets opened abruptly and laptop or computer investing plans issued a big volume of piled-up orders, it could induce temporary disruption.

“I just believe there’s likely to be pent-up need,” he stated, even though he added it could be a just one-off function.

The stock exchange stated it decided not to attempt to restart its units throughout investing hours on Thursday for anxiety of resulting in confusion.

Generate to Suryatapa Bhattacharya at [email protected] and Kosaku Narioka at [email protected]

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Appeared in the October 1, 2020, print edition as ‘System Problem Halts Tokyo Investing.’