The head of the Tokyo Stock Exchange resigned on Monday, nearly two months after a technical glitch at the exchange shut down equities trading across Japan in a major if temporary disruption to the financial markets in the world’s third largest economy.
The decision by the exchange’s president and chief executive, Koichiro Miyahara, followed an announcement earlier in the day by Japan’s financial regulator that it had issued a business improvement order to the exchange and its parent company, the Japan Exchange Group.
In a news conference on Monday, Akira Kiyota, chief executive of the parent company, announced that he would be taking over from Mr. Miyahara and pledged to avoid future shutdowns. He also said that he would take a 50 percent pay cut as an expression of contrition for the problems caused by the shutdown.
The disruption occurred early on the morning of Oct. 1 after the system that runs the exchange failed to switch to a backup in response to a hardware problem. The problem cascaded across Japan, shutting down most of the country’s major exchanges for a full day and rattling investor confidence.
The Tokyo Stock Exchange is the world’s third-largest equity market, behind the New York Stock Exchange and the Nasdaq Stock Market, with nearly $6.2 trillion worth of stocks, according to the World Federation of Exchanges. It has the most listed companies of any major exchange and handles tens of billions of dollars of business on an average day.
Japan had last experienced a systemwide shutdown in 2005.