Lessons learned

A succession of failures at the Tokyo Stock Exchange (TSE) has put exchange trading systems under the spotlight and, in turn, has prompted traders and brokers to look closely at their own internal controls. What has been learned from the TSE failures?

A spate of incidents at the Tokyo Stock Exchange (TSE) over the past four months has highlighted fundamental weaknesses in its trading system - flaws that have sparked regulatory ire, fury among traders and the resignations of three top exchange officials.

The events have also emphasised how easily trading errors can be made, and shown that operational failures can have a knock-on effect on market prices and lead to significant losses for trading and brokerage firms. More importantly, where the