Tokyo Financial Exchange-Operating Profit of 558 Million Yen,57% Revenue Decrease

Jun. 03, 2024
The president, Takuo Hirota

The president, Takuo Hirota

Tokyo Financial Exchange (TFE) announced the summary of its financial results for the fiscal year ending March 2024-April 1 2023 to March 31 2024-on May 23.
According it, operating revenue was 4 billion 34 million yen (12.7 percent down year on year), operating profit was 558 million yen (57.2 percent down), current profit was 566 million yen (58.1 percent down) and net profit was 460 million yen (62.5 percent down), decreasing significantly respectively from the previous year.
The major reason for the significant decrease in revenue was that the volume of currency pair trading for USD/JPY in FY 2023 was 8 million 810 thousand, almost halved from the previous year, and the total volume of “Click 365”in FY 2023 was 26 million 340 thousand, decreasing by 30 percent from the previous year.

As for breakdown of the operating revenue, 4 billion 34 million yen, fixed rate participation fee was 3 billion 388 million yen, making up the majority of the total, information provision fee was 273 million yen, and system equipment related income was 182 million yen, etc. On the other hand, operating expenses were 3 billion 476 million yen, so operating profit was 558 million yen.

TFE also announced its business plan for the current fiscal year.
Regarding its retail business, the following were mentioned.Ⅰ. Expansion of CFD (Contract for Difference).Ⅱ. Expansion of FX. Ⅲ. Unearthing new trading needs. Ⅳ. Strengthening market making. Ⅴ. Expansion of transactions regarding FX clearing. Ⅵ. Collaboration with businesses in different industries.

As for CFD, a new product (Nikkei 225 micro) is scheduled to be listed in September, and as for FX, three new currency pair products (Hungarian forint, Czech koruna and China offshore renminbi) are scheduled to be listed in January 2025.

As for wholesale business, mainly to improve the liquidity of TONA futures trading, listing of medium and long term interest rate futures transactions will be considered.

Next term trading system will be decided on development method in March 2025 with a view to reducing costs.

The president, Takuo Hirota who attended the first press conference after taking office expressed his opinion “This could be a historic turning point for the Japanese economy that has been in a slump for a quarter of a century since the bubble burst” considering the business environment surrounding the exchange regarding Japan’s economic situation.

(Futures Tribune・issued May 28, 2024 ・no.3290)
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