Reductions in tick sizes may be prompting high-frequency traders to move to the sidelines to re-assess their strategies, says Yasuaki Sumimoto, head trader at Mitsubishi UFJ Asset Management.
Following the failure of two recent ventures by Australia Securities Exchange, an executive from the bourse warns that the success of new platforms depends on drawing liquidity together.
The combined exchange group formed by the merger of TSE and OSE is set to complete integration of their derivatives markets, which may bolster interest from high-speed traders.
JPX is due to begin introducing smaller tick sizes this week, while proprietary trading systems are making technology upgrades. But do retail investors really care?
While many welcome the planned reduction in tick sizes by the Tokyo Stock Exchange, SBI Japannext warns such a move could lead to a "tick-size war".
Much-increased market volatility and a more flexible short-selling regime are combining to boost interest in high-frequency trading in Japan.