It emerged late last week that executives at Livedoor, the internet company behind last Wednesday's Tokyo Stock Exchange suspension, are undergoing further questioning in connection with allegations that they deliberately misled investors.
In an unprecedented move by a major global market, the Tokyo Stock Exchange was forced to temporarily suspend trading shortly before Wednesday's close as a wave of panic selling overwhelmed the exchange's computer systems.
The fallout from a raid on the internet portal by Japanese prosecutors on Monday triggered the sell off, and the TSE was forced to halt trading twenty minutes before the 3pm close, as the number of orders and executions threatened to exceed its systems' capacity.
"Because there was a possibility that the number of orders and executions received would exceed the amount able to be processed by the system, Tokyo Stock Exchange today temporarily suspended trading of all equity, convertible bond, and exchange bond issues during the afternoon session," the TSE explained in a statement.
The TSE said that it "deeply apologized" for the inconvenience caused to investors and said that it was "determined" to continue its efforts to increase the capacity of its system.
According to reports, Livedoor boss, Takafumi Horie, chief financial officer, Ryoji Miyauchi, and director Fumito Kumagai were all called for questioning by prosecutors on Friday, ahead of a midnight deadline for the firm to report to the TSE. However, it also emerged that Hideaki Noguchi, vice president at H.S. Securities, which was implicated in the probe into Livedoor's affairs, had apparently committed suicide.
In response to Wednesday's crisis, the Exchange also announced last week that it would be increasing its computerized trading system's capacity from 4.5 million daily transactions to 5 million.
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