INTERVIEW: TSE Planning New Disclosure Rules for Midsize Firms

Tokyo, April 19 (Jiji Press)–Tokyo Stock Exchange Inc. plans to introduce new disclosure rules for midsize companies that have not published specific measures to improve capital efficiency, its president, Ryusuke Yokoyama, has said in a recent interview. Although three years have passed since the exchange called on listed firms to focus on boosting capital efficiency and stock prices, midsize companies have been slow to announce related targets and measures to achieve the goals. “It’s important for companies finding it difficult to meet our past request to get to the starting line,” Yokoyama said, explaining the reason for the planned introduction of new disclosure standards. Japan’s benchmark Nikkei 225 stock average, which stood around 28,000 in late March 2023, when the exchange made the request, has more than double since then. The index is based on 225 selected issues listed on the exchange’s top-tier Prime section, chiefly for internationally active large companies. The president said that the request played a certain role in spurring the market climb. As of the end of February this year, 93 pct of the companies listed on the Prime section have made disclosures as requested, while only 51 pct of the firms on the exchange’s Standard section, mainly for midsize corporations, have done so. “Companies may be hesitating to take action as internal systems may not be ready,” Yokoyama said, underscoring the need for new disclosure guidelines for Standard-listed companies based on their unique circumstances. Yokoyama became TSE president April 1 this year. He has extensive experience in systems management and led, as the board director in charge, restoration efforts during a 2020 system failure that led to a full-day suspension of trading on the exchange. “There is always a possibility (of system failures), but it’s important to restore systems within the day even if they are halted,” he said, expressing his commitment to ensuring stable market operations. END [Copyright The Jiji Press, Ltd.]