00:00Tell us, in between the AI exuberance, the sort of possibility of these big tech listings in the
00:07pipeline, but also geopolitical and energy concerns, on the other hand, what are you
00:12looking at as the biggest opportunities and risks right now for Japan?
00:22Okay, so good morning, and so I'm in the e-commerce SP, and so that, anyway, Japan's market is going
00:35very well, and you may understand that the index is going high, almost close to the record
00:42high, and 2 to 5 rising up 20%, and the topic is also 10%, and trading volume is also very
00:51much growing, and trading value is almost close to 10 trillion yen in April and May also.
01:00So that, so far, I really understand that Japan's market is going very well.
01:06How is international interest going then?
01:17What are you seeing in terms of interest from international investors?
01:27So that TSC, in these years, is going very much focus on the companies' reform, especially
01:38a focus on corporate governance changes.
01:40companies, and I think in these years, the level of corporate governance is very much going
01:47forward.
01:49And so that, especially foreign institutional investors see very much positive for these
02:00kind of form changes in Japanese companies.
02:03So it is one of the reasons why people, especially foreign investors, come to rush into the Japan's
02:12market.
02:13So that in this year, I think there are more than 10 to 15 trillion yen exceed buying by the
02:22foreign investors.
02:23This is some kind of proof that Japan's market change is attract all the global money into Japan.
02:35Well, the Bank of Japan has started selling holdings of ETFs.
02:40There's probably more to come as well.
02:43Have you seen any impact of this or do you anticipate any impact that might result?
02:50I think that, of course, we understand that BOJ owns a huge number of ETFs.
02:58But the change to sell their assets related to the ETF is very much slowly so that it is
03:08not so much impact to the whole ETF market or cash market side.
03:13So that we, TSE means that very much focus on how we can improve or expand the ETF market,
03:25especially in Japan.
03:26So that right now we have more than 400 numbers of ETFs listed on the Tokyo Stock Exchange.
03:33And also the trading volume of ETFs also very much almost come double in comparing two years
03:41ago so that we understand there's more room for expanding the ETF market in Japan exceed the
03:51BOJ owns or the sell slowly to the market.
03:56Now, in terms of expanding your offerings, you were hoping to get regulator approval for active ETFs to trade
04:05non-listed instruments by this June.
04:07Well, it's June.
04:09I'm wondering if you can give us a progress report on that.
04:14Yes, exactly.
04:15So that the variety of the ETFs is one of the key factors for how we can expand the ETFs
04:22in Japan.
04:23So that firstly, we've started from a very simple index related ETFs.
04:29But right now we have a variety of ETFs besides the domestic one, but the very global ETFs.
04:36And also right now we focus on also the bonds ETFs, not only BOJs, so that JGBs, but also the
04:46foreign bonds ETFs is right now listed on exchanges.
04:51And also you mentioned the active ETF is very much the next point that we should focus on.
04:59And we really understand that the activity is very much popular in especially the US market.
05:04So that we try to expand.
05:08And we also talk with the JFSA to slightly change the regulation that the rules are to ease,
05:14to ease it to list the very much different types of activities.
05:21Yes.
05:23What is the IPO pipeline look like for Japan?
05:30Yes.
05:31So that you may understand also that the NISA is a new tax exemption program was started in two years
05:38ago.
05:39So the dramatically the number of the NISA accounts increasing almost close to 30 million accounts in total.
05:47So that it shows that about one-fourth of the Japan's people has a NISA account.
05:56So that into this NISA account, the ETF can be invested in this NISA account.
06:04It is slightly limited right now.
06:05But we also talk with the JFSA to expand the appropriate ETFs into this NISA account to be expanded in
06:16the near future.
06:17So that we hope.
06:18So that people can easily use this NISA account to invest in a variety of the ETFs.
06:28You recently noted a push to improve capital efficiency disclosures for mid-cap Japanese companies.
06:36What are you doing to bring more Japanese mid-caps to the ETF market?
06:45So that in TSC, I think we are doing that regulation changes to accept all varieties of ETFs.
06:54And at the same time, we, I think, are improving our IT infrastructure for inviting lots of investors, especially Japan's
07:08institutional investors.
07:09We have, the name is Connector, but this is a very simple but very efficient matching platform for the ETFs.
07:19And also, we may launch in this month or the creation of the ETF is more easier connected with our
07:27clearinghouses.
07:28We have a clearinghouse, so that it is our advantage that trading side to clearing settlement side, so that we
07:36have this whole chain in JPX group.
07:41So that it is also our intention to introduce new IT platforms of those areas, trading and clearing, so that
07:50it is also our advantage, we believe.
07:54Hello.
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