Tokyo Exchange will increase the number of ETFs to 100

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Tokyo Exchange will increase the number of ETFs to 100

In a recent interview with Euromoney magazine, Atsushi Saito, president and CEO of the Tokyo Stock Exchange Group outlined the TSE's plan to increase the number of ETFs on the Tokyo exchange to 100 in three years’ time

"As of the end of June, we had 35 ETFs. As for our goal of raising the number to 100, I believe we will be able to make it happen. Why? For example, we are negotiating with US and European exchanges to get their ETFs listed in Tokyo as well. Their responses have been positive. But the TSE has nothing to do with management of such ETFs. So the attitude of asset managers is crucial to success."

"Asset managers say, “It will be fine to list our funds on the exchange, but it will be too costly and there will be little merit for us if they are not traded actively enough.” It is true that in Japan, the number of ETFs has been limited and trading has been slow. Only recently, thanks to a surge in media coverage of ETFs, trading volumes are rising and the overall transaction value is getting closer to that of the Second Section of our stock exchange. I think the ETF section is likely to become more popular if commodities-based ETFs are listed."

"Trading fees for ETFs are low, while we do not charge management and custody fees.

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