The Tokyo Stock Exchange has been ordered to overhaul its systems and processes following a computer glitch that halted trading earlier this month.
The TSE has been issued a business improvement order by the country's Financial Services Agency (FSA) following the 90 minutes trading suspension, the second major systems outage to hit the bourse this year.
At 9:18am on 7 August, the TSE was hit by a hardware failure at a derivatives trading system network device. The problem was compounded when what should have been an automatic switch to a standby device failed to happen and trading was suspended at 9.22am before finally resuming at 10:55am.
The FSA has ordered the exchange to come up with measures to ensure a repeat does not occur, which will then be scrutinised by outside experts before being implemented.
In addition, president and CEO Atsushi Saito is taking a 30% hit on his pay for two months. COO Hiroyuki Iwakuma and CIO (IT unit) Yoshinori Suzuki will both lose 30% for one month.
The business improvement order comes a day after TSE confirmed that it has acquired a two-thirds stake in the Osaka Securities Exchange for $1.1 billion in a public tender, paving the way for a full merger next year.