What is Kakaku Yusen

Kakaku Yusen is the system of pricing that is used by the Tokyo Stock Exchange. Under the Kakaku Yusen system, a lower-priced trade is given priority over a higher-priced trade for a sell order. Conversely, higher-priced trades take precedence over lower-priced trades for buy orders.


The Kakaku Yusen system serves as a tiebreaker for trades that are received or placed at the same time. This system is complementary to the exchange's other tiebreaker mechanism, which gives priority to an earlier-placed trade when two trades come in at the same price. The Kakaku Yusen system is opposite of how trades are filled on American exchanges.

Kakaku Yusen and the Tokyo Stock Exchange

The Tokyo Stock Exchange (TSE) is the world's fourth-largest equities exchange by shares traded and publishes the benchmark TOPIX index group of Japanese listed stocks daily. The TSE tightened its listing standards in 2009 after being forced to postpone a plan to list its own shares. 

On January 1, 2013, TSE merged with the Osaka Securities Exchange (OSE) to create a new holding company called Japan Exchange Group. In July of 2013, TSE added 1,100 stocks from the Osaka Securities Exchanges after the two merged their cash-equity platforms. This move made TSE the world's third biggest bourse by listed companies. Stocks that were listed on OSE but not on TSE will now only trade on the TSE. Any stocks listed on both markets will only trade on the TSE. Notable stock migrations include Nintendo Co., Murata Manufacturing Co. and Nidec Corp.

TSE was ranked as the world's 34th-largest derivatives exchange by volume in 2012, according to the annual volume survey published by the Futures Industry Association (FIA). The FIA report notes that the TSE's total volume for 2012 was up by 17.6% from the previous year, reaching almost 29.1 million contracts.

The Tokyo Stock Exchange traces its roots back to 1878 when a securities system was introduced in Japan for public bond negotiation. After passage of the "Stock Exchange Ordinance" in May of 1878, the Tokyo Stock Exchange Co., Ltd. was established on May 15, 1878. Trading began on June 1, 1878.

As the Japanese economic and investment boom of the 1980s gained momentum, the TSE opened a new, enlarged stock trading floor to accommodate the demand. However, activity on the trading floor began to dwindle in the mid-1990s as the TSE increased computerization of its stock trading. The floor was eventually closed at the end of 1998 when the TSE fully switched to electronic trading.