Fukuoka Stock Exchange announces Fukuoka TRC feasibility study

[26 October 2023, Japan] - Fukuoka Stock Exchange ("FSE") announced today that it will conduct a Feasibility Study ("FS") with participating companies on the implementation of TRC (*), a solution for stock exchanges developed by M-DAQ Pte. Ltd. ("M-DAQ"). Fukuoka TRC is the name of this project.

(*) Trading the Right Chart™ (TRC) provides foreign currency exchange service which allows overseas investors to trade foreign securities in their home currency.

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1. Background

In its medium-term business strategy (FY2022 to FY2024), FSE has set a management objective to strengthen its functions as an exchange while considering the movement to attract international financial institutions, currently promoted by TEAM FUKUOKA, a Global Financial Business Attraction organisation.

Under such circumstances, TEAM FUKUOKA attracted Singapore-based fintech company M-DAQ to Fukuoka, and the company established a presence there in September 2022. In April 2023, FSE concluded a Memorandum of Understanding (MOU) with M-DAQ, Argentum Code Corporation, and NTT Communications Corporation, and has been in discussions with the concerned parties regarding the possibility of implementing TRC.

Both Phillip Securities Japan, Ltd. and Moomoo Securities Japan Co., Ltd. have a client base of individual investors in the Asian region, and are expected to be the main users of the Fukuoka TRC. With the agreement from both securities firms for their support and cooperation,  we have decided to conduct a full-scale FS .

Note: Phillip Securities and Moomoo Securities are in the process of becoming members of FSE.

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2. About Fukuoka TRC

This is a generic term for the systems and services based on TRC to enable overseas investors, especially those in Asia, to trade stocks listed on the FSE in their home currencies.  

Overseas investors' orders are converted into Japanese yen based on the exchange rate provided by M-DAQ and the orders are submitted to FSE with the foreign currency limit price at the time of order guaranteed by M-DAQ. Currency exchange will be performed based on M-DAQ's guaranteed rate, allowing overseas investors to trade in their home currency.

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3. Future Outlook

The FS will be conducted together with the participating securities firms, and based on the results, a decision will be made as to whether it is possible to initiate a one-year trial implementation. If the trial implementation is conducted, it will be targeted to start in year 2024.

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*This English version is translated from the original version in Japanese. Please refer to the original version published on the FSE website.