Investor Presentaiton
Strengthening the Functions of the Cash Equity Market (2)!!!!
Optimization of tick sizes for medium-liquidity issues
In order to enable investors to execute trades at better prices, TSE optimized tick sizes for
medium-liquidity issues (TOPIX Mid400) whose costs related to bids and offers had remained
high from a global perspective. (adopted the same table as the TOPIX 100)
By introducing smaller tick sizes, the spread (difference between bid and offer prices) was
lowered.
Average spread decreased by 48% in the period following this measure
Average spread before and after change¹
JPX
spread (yen)
5.0
4.37
4.0
3.0
2.0
1.0
48%
decrease
2.28
0.0
Ave. before change (May 8-Jun 2)
Ave. after change (Jun 5 - Jun 22)
© 2023 Japan Exchange Group, Inc.
(Source: Tokyo Stock Exchange)
1 Calculated on time-weighted average of the difference between the best offer price and
the best bid price. Average value of TOPIX Mid400 constituent stock is used.
12View entire presentation