Company Reports

We transfer coverage of Japan Exchange Group, or JPX, which operates Japan's dominant exchanges. Operating revenue rose 22.5% to JPY 198.7 billion in fiscal 2025 (ended March 2026) on higher cash equities trading and rate-related clearing, then rose another 51% in the first quarter of fiscal 2026.

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.

Japan Exchange Group, or JPX, reported first-quarter results, which showed operating revenue up 50% on a year ago, partly offset by 22% growth in operating expenses. Net income grew by 74%.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

Japan Exchange Group's full-year net income increased 30% on strong growth in clearing and trading services revenue, which were up nearly 60% and 20%, respectively. Operating expenses grew 11%.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

Japan Exchange Group reported third-quarter results, showing operating revenue up 15% on a year ago, driven by around 60% growth in clearing services revenue and a third consecutive growth in transaction fees. Operating expenses increased by 15%, while net income grew 17%.

Japan Exchange Group reported second-quarter results, which showed operating revenue up 8% on a year ago, driven by nearly 40% growth in clearing services revenue. Operating expenses rose 11%, resulting in net income growing by 7%.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

Japan Exchange Group reported first-quarter results, which showed operating revenue up 8% on a year ago, driven by 24% growth in clearing services. Operating expenses also grew 8%, resulting in net income increasing by 8%.

Japan Exchange's full-year results saw operating revenue grow slightly ahead of operating expenses, at 6% and 5%, respectively, resulting in a 3% increase in operating income. Dividend for the period was JPY 46 per share.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

We raise our fair value estimate for wide-moat Japan Exchange Group to JPY 1,410 per share, from JPY 1,390 previously. December quarter operating revenue grew 9% on a year ago, supported by strong listing activity, especially in ETFs.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

We raise our fair value estimate for wide-moat Japan Exchange Group by 2% to JPY 1,390 per share, following its second-quarter result. Operating income for the quarter-ended Sept. 30, 2024 grew 7% on the previous corresponding period, driven by 12% higher operating revenue, partially offset by a 2% increase in operating expenses.

Japan Exchange Group’s strategy has long focused on various attempts to help revitalize the Japanese economy and financial markets. Over the past decade, this strategy took shape through various mergers and acquisitions, such as the merger between predecessor companies Tokyo Stock Exchange and Osaka Securities Exchange in 2013 and the acquisition of Tokyo Commodity Exchange in 2019. Through these mergers and acquisitions, the Japan Exchange Group has become a vertically integrated securities exchange business, with offerings across the full breadth and depth of exchanges and a dominant market share in listing, trading and clearing in Japan. JPX’s current strategy continues in a similar vein, with its medium-term management plan aiming to reinvigorate the Japanese economy and financial markets, primarily by focusing on supporting fundraising and asset formation.

We raise our fair value estimate for wide-moat Japan Exchange Group, or JPX, by 4% to JPY 2,730 per share, following its first-quarter results and a continued weakening of the yen versus the US dollar. Net income decreased 11%, but only due to the previous corresponding period, or pcp, including outsize nonrecurring revenue from asset sales. Operating revenue increased 9%, while operating expenses grew at a more measured 2%.