TOKYO: The Tokyo Stock Exchange plans to punish officials over the Oct. 1 system glitch that forced it to suspend trading throughout the day.

Japan Exchange Group Inc., or JPX, which is the TSE’s parent, said Friday that JPX CEO Akira Kiyota will hold a press conference on Monday to discuss details.

Investigations found a faulty setting for switching to a backup device in the event of a malfunction and an error in a related manual, which had been left neglected for over five years.

Although trading could have been resumed by rebooting the system, the TSE instead suspended all transactions for the entire day out of fears that the procedure would delete all orders accepted from brokerage firms before the system failure, possibly causing confusion.

It was the first time for the TSE to suspend trading for an entire day since its trading was fully computerized in 1999.

A trading suspension for an entire day is rarely seen, including in foreign stock markets.

The Financial Services Agency plans to order the TSE to improve its operations over the glitch.

The TSE was slapped with a similar business improvement order in 2005 and in 2012 due to system glitches.

Following the 2005 case, the then TSE president resigned. Remunerations were cut after the 2012 case.

The TSE plans to set out rules on the resumption of trading in the event of a system glitch in March next year.

JIJI Press