The Tokyo Stock Exchange, or TSE, has made an announcement today. The announcement is in regards to the progress it has made on the collaborative research it’s doing with Kyoto University. The research is in regard to the development of a new stock price index.
The TSE has been working alongside the Collaborative Research Chair of Securities Investment at Kyoto University’s Graduate School of Management since July of 2018. The two parties have joined in the conduction of research in order to develop a new stock price index. This price index is in development with the idea of creating a new frontier for stock price indices within the Japanese equity market.
Both the TSE as well as the Kyoto University had announced that Professor Emeritus Dr. Kawakita Hidetaka has recently applied for a patent under Japanese law. This, in turn, will stand as the foundation of this new benchmark for Japanese equities, which was inspired by the TSE’s joint research into it. This new form of benchmark has been developing with the idea of serving the market users that make use of long-term investments.
A New Benchmark In Development
Both parties will continue to explore whether or not calculating a new index based on the technology within the patent is feasible, and is subject to the examination of the patent. Furthermore, the market participants will be taken into account, as well, as they will be capable of voicing their opinions regarding this new index, as well.
As it stands now, there isn’t much information out about how this form of technology would work, but that’s an intentional measure, no doubt. However, the implication of this new index is quite impressive. It shows that the financial industry, even as something as old as the stock market, has the potential of further growth outside the expected innovations, such as improved cryptocurrencies or the like.
The Future Is Now
What this means, is the finance industry as a whole will reach a groundbreaking innovation as soon as this technology is released. The TSE and Kyoto University knows this, and are trying to keep the matter as quiet as possible in order to maintain their edge. The moment the technology can get a patent, they will be capable of showing it to the world, with the expectation that legal obligations will stop companies from undercutting their own profits from this new technology.