Tokyo Stock Exchange (TSE) is cutting the pay of four
executives, including its chairman and president, following the
systems failure on its recently-installed derivatives trading
platform in February.
Trading in the exchanges Topix derivatives was
suspended on February 8 before resuming again on February
Despite TSE restoring trading in the contract, TSE has revealed
that it is slashing the salary of Taizo Nishimuro, president
and CEO, Atsushi Saito, senior MD and COO Yasuo Tobiyama and
Yoshinori Suzuki CIO and MD, by 10% for one month.
The bourse has also censured Suzuki and its director of IT
development for trading systems, Masayuki Hirose.
The exchange has blamed the platform's developer, Fujitsu, for
the glitch, which prevented its derivatives trading system from
checking prices and resulted in orders being mismatched.
TSE said the development vendor, "did not adequately establish
a framework for checking whether such processing was carried
out correctly". But the exchange accepts that there is "room
for improvement" in its own supervisory framework.
TSE's responsibility as a market operator and
administrator is also significant in terms of failure to
construct an organisational structure that gives top priority
to ensuring the functioning of the market, says the
exchange in a statement.
The exchange also reiterated its apology to its customers.