TOKYO, Oct 20 (Reuters) - Japan’s Financial Services Agency (FSA) will conduct an on-site investigation of the Tokyo Stock Exchange (TSE) and may issue a business improvement order after a system failure caused a full-day trade suspension earlier this month, media reported. The TSE, operated by Japan Exchange Group Inc, submitted an incident report to the FSA on Friday detailing what went wrong on Oct. 1, when trading was halted in the worst-ever outage for the world’s third-largest equity market. The FSA will soon begin the on-site probe, based on which it will decide what administrative actions to take against the bourse, the Nikkei business daily reported. At a news conference on Monday, the TSE said it would draw up new rules by next March on how to restart trading following a system failure, and set up a committee to draft the new guidelines. (Reporting by Chang-Ran Kim; Editing by Lincoln Feast.)