What is ‘Kakaku Yusen’
The system of pricing that is used by the Tokyo Stock Exchange. Under the Kakaku Yusen system, a lower-priced trade is given priority over a higher-priced trade for a sell order. Conversely, higher-priced trades take precedence over lower-priced trades for buy orders.
Explaining ‘Kakaku Yusen’
The Kakaku Yusen system serves as a tiebreaker for trades that are received or placed at the same time. This system is complementary to the exchange’s other tiebreaker mechanism, which gives priority to an earlier-placed trade when two trades come in at the same price. The Kakaku Yusen system is opposite of how trades are filled on American exchanges.
Further Reading
- The Japanese economy in crises: A time series segmentation study – www.econstor.eu [PDF]
- The Works of Japanese Business Historians in 1984: Business History of Japan – www.jstage.jst.go.jp [PDF]
- The Second World War and the Controlled Economy – link.springer.com [PDF]
