The Proprietary Trading System (PTS) refers to a unique trading market system created by a securities firm. PTS allows investors to trade stocks and bonds through electronic trading systems without stock exchanges since Japan enacted the Financial System Reformation Law in 1998, and made it possible for securities firms to start PTS.
Japannext PTS was established in August 2007 as a highly public proprietary trading system operated by several securities companies. It has introduced the exchange system to realize a stable operating system with high functionality, which has been operated worldwide, and extensibility with the state-of-art system.
There are two roles that Japannext PTS plays in the Japanese equity market. The first is to provide investors with the opportunity to trade stocks after the market closes. Moreover, it provides investors with the opportunity to observe the U.S. and European stock market activity to trade based on their contemplation of the next day's trading. There are two roles that Japannext PTS plays in the Japanese equity market. The first is to allow investors to trade stocks after the market closes. Moreover, it will enable investors to observe the European and American stock market activities to trade based on their contemplation of the next day's trading. The second role is an "alternative channel of liquidity", where investors may seek the best order execution during the daytime trading session that overlaps the stock exchange trading session. We firmly believe that playing these roles will lead to a significant increase in investors' opportunities.
