Changing the status quo: the future of stock exchange technology in Japan.

"Electronic trading, algo use, liquidity pools, access and efficiency will all go up, while costs fall," says one mid-sized Japan hedge fund manager. "At some point, we will see consolidation, but for now, this market should be one to watch." Recent Developments in the Trading Landscape Proprietary Trading Privately-owned securities exchange networks that

Systems (PTS) operate away from the traditional bourses, and

sometimes offer benefits such as more flexible

hours, fees, and liquidity. Algorithms ('algos') Highly specialized automated software systems

that allow for large volume trading while

minimizing market impact. Dark Pools Highly liquid 'pools' of securities that can be

traded outside the oversight of traditional

exchanges with a high degree of anonymity.