JPX Announces Introduction of New Price Banding Mechanism for HOJO GUMI Ltd. on its Listing Day
Tokyo, Japan – August 4, 2025 – Japan Exchange Group, Inc. (JPX) today announced the introduction of a new price banding mechanism for the initial trading day of HOJO GUMI Ltd. (stock code: [Please insert actual stock code if available]) on the Tokyo Stock Exchange (TSE). This innovative approach is designed to promote fair and orderly price discovery for newly listed companies, particularly on their highly anticipated listing day.
The new mechanism will be applied to HOJO GUMI Ltd. starting from its listing date. Under this system, once a price range is established prior to the market open, the TSE will implement a phased approach to determining the opening price. This will involve a preliminary period where trading participants can submit buy and sell orders within a designated price band. Following this, a crucial “price banding” phase will commence.
During the price banding phase, the market will enter a period where trading is temporarily halted if the accumulated buy and sell orders suggest a price that moves beyond a predefined upper or lower limit relative to the previous order book. This temporary suspension is intended to prevent excessive price volatility and allow for a more measured and rational price discovery process. After a short interval, trading will resume, and the system will continue to monitor price movements within the established bands. This process will repeat as necessary until a stable opening price is ultimately determined.
This thoughtful implementation aims to mitigate the risk of sudden, sharp price fluctuations that can sometimes occur on the first day of trading for newly listed entities, especially when investor interest is particularly high. By providing a structured framework for price discovery, JPX endeavors to ensure that HOJO GUMI Ltd.’s initial trading reflects a broader consensus of market value, fostering greater confidence among investors and contributing to a more robust and transparent trading environment.
JPX remains committed to continuously enhancing market efficiency and investor protection. The introduction of this price banding mechanism for HOJO GUMI Ltd. represents a significant step forward in achieving these objectives for new listings on the Tokyo Stock Exchange. Investors are encouraged to stay informed about the trading procedures for HOJO GUMI Ltd. on its listing day.
[東証]新規上場日の初値決定前の気配運用について：（株）北條組
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日本取引所グループ published ‘[東証]新規上場日の初値決定前の気配運用について：（株）北條組’ at 2025-08-04 04:00. Please write a detailed article about this news in a polite tone with relevant information. Please reply in English with the article only.