Kodaira Ryushiro (小平龍四郎), a member of the Nikkei editorial board, looks back at the changes during the “lost 30 years” and market reforms, focusing on the period before and after Yamaichi Securities, and examines how today's stock market came into being.
The article introduces an examination of developments in Japan's securities market from the bubble era to the present, based on the book *Before and After Yamaichi: The Defeat and Reconstruction of Japan's Securities Market* by Kodaira Ryushiro (小平龍四郎), a member of the editorial board of Nikkei Inc. It first presents an assessment based on market developments since 2024, noting that the record of ¥38,915 set in 1999 was surpassed after 34 years as a new milestone was reached.
The first half of the 1990s was a period when the regulatory framework was still underdeveloped. The article points out that market opacity increased because insider trading rules were ambiguous and the 5% rule had not yet been introduced. The exposure of misconduct, including the collapse of Yamaichi Securities' self-regulatory system, became a catalyst for developing the regulatory framework, underscoring the importance of transaction transparency and disclosure.
The article says that the voluntary liquidation of Yamaichi Securities prompted Japan to adopt global standards. As the financial Big Bang progressed, foreign financial firms entered the market, and consolidated accounting and mark-to-market accounting became widespread. These developments are described as having brought major changes to corporate risk management and the framework for investment decisions.
However, the article notes that Japan's economic stagnation continued through the 2000s and that external shocks, including the Lehman shock and the Great East Japan Earthquake, also had an impact. At the same time, it presents the view that external factors became the main source of influence after the financial crisis originating in Japan, while reforms in the Japanese market have continued to advance steadily.