• The Tokyo Stock Exchange is home to over 2,200 listed companies
• The Nikkei 225 is the most closely-followed index on the exchange
• Listings on the TSE are denominated in JPY
• The exchange is owned and operated by the Japanese Exchange Group, which was formed after a merger with the Osaka Stock Exchange in 2012
• The exchange is open Monday through Friday from 9:00 am to 11:30 am and continues from 12:30 pm to 3:00 pm 
• The TSE’s press club, the Kabuto Club, meets on the third floor of the TSE building
• The TSE is not the only active equities exchange in Japan, with the Nagoya, Osaka, and Fukuoka exchanges also operating in the country 
• The TSE is the oldest and largest securities exchange in Asia
• The TSE has an average daily trading volume of over 2.5 billion shares, which makes it one of the most active exchanges in the world
• Stocks on the TSE are assigned a number, as opposed to the ticker symbols found on many exchanges around the world

The Tokyo Stock Exchange is a prestigious exchange that thoroughly vets prospective companies before they are able to list their shares. There are requirements in place that companies need to satisfy before officially obtaining a listing category. This is done to host only the companies that are financially sound and have enough liquidity to continue operating years after their IPO. Some of the requirements and rules upheld by the Tokyo Stock Exchange include:

• Market capitalization - companies need to have a market capitalization of at least JPY 25 billion (approx $225 million) at the time of listing
• Financials - companies need to have positive net assets, operating income, and cash flow over the last audited fiscal year 
• Corporate governance - companies must meet certain corporate governance standards, including having a board of directors with a majority of outside directors and establishing audit and compensation committees
• Disclosure requirements - companies need to disclose their financial and governance reports in a timely and accurate manner
• Stock - companies must list a minimum 35% of their shares as public float and must have at least 2,000 shareholders 
• Other - companies are also required to adhere to any other rules and regulations set by the exchange, or the financial regulators 

The Tokyo Stock Exchange generates revenue by charging trading and listing fees, as well as by providing valuable data and technological solutions to institutional investors. Some of the revenue streams include:

• Trading fees - the exchange charges percentage fees on each transaction made by market participants. The percentage charge may vary depending on the volume and type of security exchanged
• Listing fees - the Tokyo Stock Exchange also charges one-time and annual listing fees for companies to apply for and maintain a spot on the exchange
• Market data and services - institutions can buy real-time market data from the exchange to conduct research and due diligence
• Trading systems - the exchange also offers the TSE “arrowhead” trading system, which enables participants to facilitate high-frequency trading on the exchange

TSE Listing and Other Fees

Aside from the service charges and trading fees, the Tokyo Stock Exchange also charges application and annual recurring fees to companies that want to maintain their spot on the exchange. Some of the listing fees charged by the TSE include:

Listing examination fees:

• JPY 4 million ($34,750) for Prime Market listings
• JPY 3 million ($26,060) for Standard Market listings
• JPY 2 million ($17,370) for Growth Market, or secondary listings

Initial listing fees:

• JPY 15 million ($130,300) for Prime Market listings
• JPY 8 million ($69,490) for Standard Market listings
• JPY 1 million ($8,690) for Growth Market listings

If the TSE is the main market for the listing company, they must pay an additional public offering fee by the end of the month after the listing, which is calculated thusly:

• 0.0008 × the number of newly issued shares publicly offered × the offering price - For the public offering of newly issued shares at the time of listing 
• 0.0001 × the number of previously issued shares publicly offered × the offering price - For the public offering of previously issued shares at the time of listing

If the TSE is the main listing market, the company must also pay an additional fee of JPY 120,000 ($1,042)

Additionally, companies must also pay an annual fee based on their market capitalization:

• JPY 960,000 - JPY 4,560,000 for TSE Prime Market listings
• JPY 120,000 - JPY 840,000 for TSE Standard Market and TSE Growth Market listings

The Nikkei 225 is a stock market index that tracks the performance of 225 large, publicly traded companies listed on the Tokyo Stock Exchange (TSE). The index is often referred to simply as the "Nikkei" and is considered one of the most important benchmarks for the Japanese stock market.

What Is The Nikkei 225 Index?

The Nikkei is a market capitalization-weighted index that was first published in 1950. The companies included in the index are selected by the Nikkei board, which considers a number of criteria, such as market capitalization, liquidity, and sector. 

The Nikkei is often used as the prime measurement of the Japanese economy. The exchange is also home to a number of other financial products from the region, such as ETFs and mutual funds.

Nikkei 225 Weighting By Sector

Here is how the Nikkei 225 Index weight is allocated by market sector:

As seen in the table, the Nikkei is a relatively well-balanced index. However, industrials, IT, and consumer discretionaries account for almost 60% of the weight, which further highlights the robust high-tech and manufacturing sectors of the Japanese economy. 

TOPIX, or the Tokyo Stock Price Index, is a stock market index that represents the performance of all companies listed on the Prime Market section of the Tokyo Stock Exchange. There are over 1,600 companies listed on the Prime Market section of the exchange that are tracked by TOPIX.

What Is The TOPIX Index?

The TOPIX Index divides all stocks listed on the Prime Sections of the TSE into 33 sectors, which are all tracked by different ETFs. TOPIX is considered to show the clearest picture in terms of the overall health of the Japanese economy, as investors and analysts are able to gauge the performance of sectors and subsectors that make up the bulk of the exchange. 

TOPIX Weighting By Sector

TOPIX is divided into 33 sectors, the weights of which are allocated as follows:

The TOPIX Index provides a detailed view of the makeup of the Japanese economy. The Tokyo Stock Exchange lists a number of ETFs that track each of the 33 sub-sectors of the TOPIX index for investors to easily diversify into an industry they are most interested in. 

• The Tokyo Stock Exchange is the oldest and largest stock exchange in Asia
• The exchange has three listing categories: Prime, Standard, and Growth Markets
• Stocks on the exchange are labeled by numbers and not by traditional tickers
• The Nikkei 225 and TOPIX are the two main capitalization-weighted indices on the exchange
• The TSE is not the only stock exchange in Japan - there are exchanges in Nagoya, Fukuoka, and Osaka as well
• The TOPIX index is divided into 33 subsectors and provides a detailed view of the Japanese stock market