Tokyo Stock Exchange Adjusts Tick Size for New ETF Listing, Enhancing Trading Efficiency
Tokyo, Japan – September 3, 2025 – The Japan Exchange Group (JPX) announced today a significant update regarding the trading of a newly listed Exchange Traded Fund (ETF). Effective from its listing date, the tick size for the iShares AI Global Innovation Active ETF (Code: 408A) will be adjusted, a move designed to further enhance trading efficiency and liquidity for investors.
The iShares AI Global Innovation Active ETF, scheduled to debut on the Tokyo Stock Exchange (TSE), will operate under a revised tick size policy for its initial trading period. This adjustment is a strategic measure by the JPX to ensure a smoother and more orderly trading environment for newly listed instruments, particularly those that are anticipated to attract substantial investor interest and trading volume.
Tick size, also known as the minimum price fluctuation, dictates the smallest permissible increment by which a security’s price can change. A carefully calibrated tick size is crucial for market quality. In the case of new listings, particularly innovative products like an active ETF focused on the dynamic field of AI global innovation, an appropriate tick size can facilitate tighter bid-ask spreads, reduce transaction costs for investors, and ultimately contribute to a more liquid market.
While the specific details of the adjusted tick size for the iShares AI Global Innovation Active ETF have been published by the JPX, the underlying principle is to provide a trading environment that balances the need for price discovery with the desire to prevent excessive price volatility in the early stages of a security’s life on the exchange. This proactive approach by the Tokyo Stock Exchange demonstrates its commitment to fostering a robust and investor-friendly trading ecosystem.
The iShares AI Global Innovation Active ETF itself represents an exciting addition to the Japanese market, offering investors exposure to a forward-looking investment theme. By implementing this tick size adjustment, the JPX is laying the groundwork for a more effective and efficient trading experience for all participants involved with this new ETF. This initiative underscores the exchange’s ongoing dedication to adapting and evolving its market rules to meet the needs of a diverse and growing investor base.
[東証]新規上場日の呼値の単位：iシェアーズ AI グローバル・イノベーション アクティブ ETF（コード408A）
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