Tokyo Stock Exchange’s CEO to accept salary cut over recent trading system glitch

Maria Nikolova

The Exchange has published a detailed report on the trading system glitch that occurred on October 9, 2018.

The Tokyo Stock Exchange (TSE) has earlier today posted a statement and a detailed report regarding the trading system glitch that occurred on October 9, 2018.

On October 9th at 7:31 a.m., an extremely large number of messages were sent to the arrowhead system from Merrill Lynch Japan Securities, which caused one of the four connection devices within arrowhead to come under heavy stress. As a result, the virtual servers connected to this connection device (“Connection Device #1”) were unable to connect to arrowhead. The TSE confirmed that orders were able to be placed normally via Connection Devices #2 to #4, and as such allowed trading for all issues according to the normal trading schedule.

The direct cause of the incident was that the connection device came under heavy stress as a result of an extremely large number of messages being received from Merrill Lynch Japan Securities. When the connection device came under heavy stress, arrowhead suspended the functionality of the affected gateway servers as designed for system stability, leading to the incident described.

Some securities companies were able to place orders via Connection Devices #2 to #4, whereas others were not. Each company is currently reviewing their own operational process, system design, and other issues, and the TSE is working with all related parties to confirm connection specifications, testing procedures and other system and process elements.

With regards to this incident, the TSE admits it was unable to adequately fulfill its mission as an equity market operator in terms of prioritizing initiatives for developing and managing a reliable system and ensuring market functionality. Given this, penalties have been imposed on top managers.

Koichiro Miyahara, President and CEO, is accepting a 10% reduction in monthly pay for one month. In addition, Ryusuke Yokoyama, Senior Executive Officer, is censured. Yasuhiko Tamura, Director, IT Development, receives a warning.

In order to prevent recurrence of the problems, TSE will create a forum for sharing information with securities companies about the cause of the incident and preventative measures, and will also take a number of steps in cooperation with securities companies to further enhance market stability. These include, among others, specifying system response required by securities companies in the event of a malfunction in arrowhead devices within connection specifications, as well as the planning and execution of malfunction tests with securities companies.

Read this next

Executive Moves

Options Technology promotes Laura McCann to CFO

“Laura’s promotion to CFO is the next stage in our long-term strategy of building a world-class finance team servicing the global business from our Belfast office. Back in 2016, Jon took on the challenge of laying the groundwork for that vision. Laura has been an integral part of the strategy from day one.”

Digital Assets

Thailand’s crypto economy under the spotlight: a report by HashKey Capital

“I’m excited by the rapid expansion of Thailand’s Web3 sector. With over 3 million overall crypto users and 600% growth in the market in recent years, the dynamism in our DeFi and NFT sectors is clearly evident. Thailand is increasingly becoming a hotspot for digital nomads, drawn by our crypto-friendly policies, affordable living costs, vibrant food and beverage culture and diverse cultural landscape.”

Retail FX

Webull Australia offers 5.4% yield on uninvested cash

“US dollar money market funds are heavily regulated, meaning client funds are managed in a safe, reliable and trusted environment, which is of critical importance to us, and continues to remain top-of-mind for our clients.”

Digital Assets

Bybit welcomes Ethena’s USDe, a decentralized stablecoin utilizing delta-hedging staked Ether

“Our collaboration with Ethena Labs represents our commitment to solving some of the biggest challenges in crypto today, not least, the creation of a decentralized stablecoin. The integration of USDe on Bybit expands our stablecoin offerings, providing our users with an array of uncorrelated solutions accessible from our Unified Trading Account.”

Market News

Unravelling the Yen Surge and BoJ Policy Speculations Impacting USD/JPY

The recent downturn in the USD/JPY pair due to the yen’s strength, driven by speculation about the Bank of Japan’s potential tightening of monetary policy.

Digital Assets

Himalaya Exchange customers seek release of frozen funds from DOJ

FormerFeds, a corporate defense and litigation service provider, has filed a lawsuit against the U.S. Department of Justice (DOJ) on behalf of over three and a half thousand Himalaya Exchange customers.

Digital Assets

Nubank, Circle, and Talos join forces for crypto adoption in Brazil

Nubank, the Brazilian neobank backed by Warren Buffett’s Berkshire Hathaway and Softbank Group Corp, announced new partnerships with cryptocurrency firms Circle and Talos.

Metaverse Gaming NFT

Flare onboards Ankr, Figment, Restake, and NorthStake as validators

Flare, an EVM smart contract platform known for its focus on blockchain data utility, has announced a major step in its development. The platform has onboarded leading infrastructure providers, including Ankr, Figment, Restake, and NorthStake.

Digital Assets

Sui Joins DeFi Leaders, Topping $100M in Bridged USDC

Sui, the groundbreaking Layer 1 blockchain created by the technology experts who led Meta’s Diem blockchain initiative and created the Move smart contract language, continues its explosive ascent in decentralized finance (DeFi). This week, it surpassed $100 million in bridged USDC.