Japan’s only high speed trader Dharmacapital moves to Singapore
This comes as Tokyo has struggled to cement its status as a major international financial hub.
Japan's sole high-speed trader, Dharmacapital, relocated its entire staff to Singapore in early August, according to sources familiar with the matter, leaving Tokyo without any such firms operating. The high tax rate in Japan, compared to other Asian financial hubs like Singapore and Hong Kong, likely contributed to the decision, one source said.
Dharmacapital CEO Akiyoshi Shiotani stated that while Japan remains their most important market, the relocation aims to enhance global market access. As one of the 53 high-frequency trading units in Japanese markets, Dharmacapital was the only firm based in Tokyo, as per the Financial Services Agency's registered list in July. Many competitors, such as Citadel Securities, Virtu Financial, and Jane Street, trade from Singapore or Hong Kong.
Tokyo has faced difficulties in establishing itself as a major international financial hub, with high income tax rates and language barriers often cited as reasons for other cities' appeal over the Japanese capital. In August, Singapore introduced a proposal for tax exemptions for fund managers, while Hong Kong is experiencing a resurgence in its fortunes and attracting returning talent.
As of 2024, market-making firms comprised over 30 percent of trading value in the Tokyo Stock Exchange, according to an FSA survey.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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