Japan Exchange Group Targets Growth by Broadening Equity and Derivatives Product Lineup

The merger of Tokyo Stock Exchange and Osaka Securities Exchange into Japan Exchange Group has seen the combined group becoming a dominant trading venue for cash equities and futures in Japan. Its majority ownership of 90% in Japan Securities Clearing Corp. is core to the group's vertically integrated business model and helps fend off competition from new entrants in the Japanese market. Similar to most exchanges in the region, JPX faces competition in equity and futures trading and clearing domestically. The two proprietary trading systems and other dark pools hold limited market share at close to 10%, up slightly from 5% in 2014. While the trading occurs in the dark pools, the platforms use JSCC to clear their equity trades, meaning JPX captures part of the revenue in the execution value chain.