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OSE wraps up 130 years of cash stock trading

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(Globalpost/GlobalPost)

The Osaka Securities Exchange ended its 130-year history of cash stock trading on Friday, as its listed shares will be transferred to the Tokyo Stock Exchange on Tuesday following a three-day weekend in Japan.

The OSE, whose predecessor Osaka Stock Exchange Inc. began cash trading in 1879, will focus on derivatives trading in line with an agreement between the two bourses, both now under the wing of Japan Exchange Group Inc., to integrate their derivatives trading on March 24.

The average index for 250 major shares of the Osaka bourse's First Section finished the final trading session at 23,587.37, up 222.83 points from Thursday, in the wake of the overnight rise on Wall Street.

Some 10 TSE officials will now be stationed at the Osaka arm of Japan Exchange Group to help entrepreneurs in western Japan conduct initial public offerings for their start-up companies or to provide a range of advice to the area's companies.

The Osaka arm will continue to provide the venue for announcing their periodic financial results in a bid to preserve its capability of dispatching information to financial market players.

The OSE yardstick posted an all-time high of 39,403.83 on Jan. 4, 1990, during the heyday of the asset-inflated bubble economy in Japan.

The average, incorporating many high-price shares such as those of Murata Manufacturing Co., Nidec Corp. and Nintendo Co., has for years fluctuated in higher price territory than the 225-issue Nikkei Stock Average.

After postwar turbulence forced a four-year halt to trading at the OSE's predecessor, the Osaka Securities Exchange was formally inaugurated in April 1949, with the new bourse reviving stock trading the following month.

In 1971, a high-profile battle involving speculators who placed massive buy or sell orders for the stock of steelmaker Nakayama Steel Works Ltd. was waged on the OSE, leading OSE administrators to intervene to order a forced settlement of the unsettled orders.

Although the OSE used to account for roughly 10 percent of the combined daily trading volume nationwide in the 1980s, transaction volumes in Osaka have declined drastically in the wake of the burst of the economic bubble in the early 1990s.

In fiscal 2012, the OSE accounted for only 3.5 percent of such overall trading volume against the TSE's 96.4 percent.

The two bourses will make a final check on the trading system during the long weekend to brace for the merger of cash stock trading, their officials said.

Monday is Marine Day, a national holiday in Japan.

==Kyodo

http://www.globalpost.com/dispatch/news/kyodo-news-international/130712/ose-wraps-130-years-cash-stock-trading