Launch of Follow-up Meetings on TSE Reforms

◆A Council of Experts Concerning the Follow-up of Market Restructuring was established by the Tokyo Stock Exchange, with the first meeting held on July 29. At this meeting, experts discussed additional measures to improve the corporate value of listed companies, the treatment of transitional measures, and supply of capital to venture businesses, etc.

◆At the first meeting, a wide range of discussions were held on the ideal market and how to evaluate and follow up on the institutional design of the market after reorganization. No decisions have been made that would lead to a change in the system.

◆Although a period of about three years is set out for the meetings, discussions are likely to be summarized about six months from now.

◆A major focus was the ideal approach to transitional measures, and there were opinions expressed that the period of transitional measures should be indicated at an early stage.

◆Regarding the transitional measures that have attracted attention, some said that the transitional period should be indicated as soon as possible. There were opinions that the specific period should be 3 or 5 years, or that a two-stage approach should be used, with an interim target in 2025, followed by termination after that.