Corporate Reforms and Interest Rate Futures Leading to Greater Trading Volume on Japan Exchange

Japan Exchange has an effective monopoly on facilitating the movement of capital between one of the world’s most robust economies and the rest of the world, with revenue mainly driven by its trading volumes for cash equities, futures, and government bonds. JPX’s trading volume and revenue have surged since 2024, with corporate governance reform and rising interest rates taking hold—directly causing record volumes in cash equities and bond futures, respectively. We believe the continuation of better corporate governance and rising interest rates should lead to higher volumes—and thus, greater trading and clearing fees.