Major Japanese financial institutions are planning to give the Tokyo Stock Exchange some competition. Sources say they are launching a proprietary trading system this month that will offer longer market hours.
The platform is called the Osaka Digital Exchange, and it is funded by industry heavyweights SBI PTS Holdings, Sumitomo Mitsui Financial Group, Nomura Holdings and Daiwa Securities Group.
Sources say the platform will operate from 8:20 a.m. to 4 p.m. starting June 27th. Investors will be able to buy and sell stocks and exchange-traded funds.
The financial giants are also planning to launch Japan's first trading system for digital securities tokens as early as next year.
The system would use blockchain technology for distributed online ledgers.
The moves come following a system failure at the Tokyo Stock Exchange in 2020 that caused a full-day market suspension. It led to growing calls for the development of alternative markets in Japan. Only about nine percent of the country's total stock trading is done on proprietary platforms.