Tokyo Stock Exchange (TSE) is cutting the pay of four executives, including its chairman and president, following the systems failure on its recently-installed derivatives trading platform in February.
Trading in the exchanges Topix derivatives was suspended on February 8 before resuming again on February 12.
Despite TSE restoring trading in the contract, TSE has revealed that it is slashing the salary of Taizo Nishimuro, president and CEO, Atsushi Saito, senior MD and COO Yasuo Tobiyama and Yoshinori Suzuki CIO and MD, by 10% for one month.
The bourse has also censured Suzuki and its director of IT development for trading systems, Masayuki Hirose.
The exchange has blamed the platform's developer, Fujitsu, for the glitch, which prevented its derivatives trading system from checking prices and resulted in orders being mismatched.
TSE said the development vendor, "did not adequately establish a framework for checking whether such processing was carried out correctly". But the exchange accepts that there is "room for improvement" in its own supervisory framework.
TSE's responsibility as a market operator and administrator is also significant in terms of failure to construct an organisational structure that gives top priority to ensuring the functioning of the market, says the exchange in a statement.
The exchange also reiterated its apology to its customers.