As Tokyo Extends Stock Trading Hours, Concerns Grow It Could Stoke Volatility
- Trade volumes may not rise while liquidity could shrink
- Lack of anti-gaming measures at closing auction raises worries
This article is for subscribers only.
Japanese equities may become more volatile after the Tokyo Stock Exchange extends its trading hours in November, with the risk that investors might be scared off as it comes on the heels of last month’s market crash.
The Japanese bourse will increase the equities trading hours by 30 minutes beginning Nov. 5, pushing back the cash market’s close to 3:30 p.m. and lengthening the daily session to 5 1/2 hours. The exchange will also introduce a closing auction session to accommodate the increased trading volumes at the end of the day.