Japanese editorial excerpts -3-.
TOKYO, Nov. 3 Kyodo
Selected editorial excerpts from the Japanese press:
TSE'S COMPUTER TROUBLE (IHT/Asahi as translated from the Japanese-language Asahi Shimbun's editorial published Nov. 2)
The Tokyo Stock Exchange Tokyo Stock Exchange
Main stock market of Japan, located in Tokyo. It opened in 1878 to provide a market for the trading of government bonds newly issued to former samurai. was struck Tuesday by an incredible disaster -- it suspended trading Suspended trading
Temporary halt in trading in a particular security, in advance of a major news announcement or to correct an imbalance of orders to buy and sell.
The temporary suspension of trading in a security. on a business day, frustrating a huge number of investors who can make or lose big money in seconds.
The exchange's computer system failed to work, forcing a complete suspension of trading for the morning session and part of the afternoon session. It was an extraordinary mishap that stopped trading on 2,520 issues, including stocks listed on the First and Second sections.
The TSE See Tokyo Stock Exchange.
1. See Tokyo Stock Exchange (TSE).
2. See Toronto Stock Exchange (TSE). has been boasting of being one of the three leading stock exchanges in the world, along with the New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London bourses. But the TSE was also struck by a large-scale system problem in August 1997. Such repeated glitches could cause the exchange to abandon its status as a major international market.
Recently, trading volume Trading volume
The number of shares transacted every day. As there is a seller for every buyer, one can think of the trading volume as half of the number of shares transacted. That is, if A sells 100 shares to B, the volume is 100 shares. on the TSE has been running at levels higher than even those during the economic bubble days, driven by expectations of a continued economic recovery. On Sept. 21, a record 3.69 billion shares changed hands on the First Section.
Behind the surge in trading are the growing ranks of electronic day traders, or individual investors who sit in front of a computer and buy and sell shares over the Internet. Some of them even trade more than 100 times a day.
The TSE has been bolstering its system's ability to handle the increasing load of transactions since May this year. As part of the effort, the exchange increased the number of transactions that can be processed in a day to 7.5 million from 6.2 million in mid-October.
In addition, a new program was developed and installed to catalogue data at the end of each month to reduce the system's workload.
Early on Tuesday, the exchange found that it could not start up the server to receive orders from securities firms.
Adjustments in computer systems to improve efficiency in processing and organizing huge amounts of data are part of the daily system management work. The mistake the TSE made was that it neglected to test the system for glitches after such major adjustments.