TOKYO, June 3: Nasdaq Stock Market Inc. said Monday it was seeking alternatives to a tie-up with Japan’s Osaka Securities Exchange (OSE), which operates the Nasdaq Japan market for start-ups, due to regulatory problems.
The major US bourse appeared frustrated by the OSE’s failure to approve a set of rules governing a new trading model to increase transparency, liquidity and accessibility for investors and issuers.
Despite market support and considerable actions taken by Nasdaq to tailor the dealer market to the needs of member companies... the Osaka Stock Exchange has yet to fulfill its role by approving the rules for the dealer market, a necessary first step in achieving regulatory approval, it said in a statement.
In view of the substantial delay... Nasdaq has formally informed the Osaka Stock Exchange that it will commence exploring alternative avenues for speeding up regulatory approval and implementation of the Nasdaq Japan dealer market.
But, contrary to an earlier news report, Nasdaq said the move was not a sign it would terminate its agreement with the OSE, adding it only wanted to explore different channels to implement the new market model.
Yuki Hosoda, a spokeswoman for the bourse located in Japan’s second city of Osaka, declined to comment on the statement.
We have not heard directly from Nasdaq in the United States yet, she said, adding a statement would be issued after the two sides met for talks.
The Nihon Keizai Shimbun newspaper said Nasdaq would stop entrusting the trading
of listed stocks on Nasdaq Japan to the OSE unless they introduce its new trading system under a re-negotiation round that would continue for half a year.—AFP
