Published On: Fri, Jan 14th, 2011

TSE Starting High-Speed Index Dissemination Service

The Tokyo Stock Exchange (TSE) is starting a new high-speed index dissemination service with the aim of calculating and disseminating TOPIX and other target indices each time a price to be used for the index calculation occurs, at the millisecond-level, as below. This service will also include calculation and dissemination of new best bid quote and best offer quote indices

    Launch of Service : February 28, 2011

TSE indices are calculated by the following formula:

Calculation Method

Index = (Current Market Value / Base Market Value ) * Basis Point

Base Market value and base point varies depending on the index. The number of shares for index calculation is the number of listed shares multiplied by FFW.

Number of shares for index calculation = Number of listed shares for index calculation × FFW

FFW (Free-Float Weight) is a weight independently calculated by TSE that is assigned to each listed stock. FFW is used in index calculation and measures a stock’s investability (distribution in the market). The FFW of two companies A and B are different if their share distribution is different.

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