OSE, U.S. partner dissolve ties on Nasdaq Japan market.

OSAKA, Oct. 15 Kyodo

The Osaka Securities Exchange (OSE) and Nasdaq Stock Market Inc. of the United States on Tuesday dissolved their business alliance, putting an end to operating the Nasdaq Japan market together after a little more than two years.

Nasdaq Japan Inc., the Tokyo-based Nasdaq unit that has worked as a promoter for the market for start-up businesses in Japan, is in the process of liquidation.

The Osaka bourse, which took over management of the Nasdaq Japan market Tuesday, said it will engage in efforts to further promote the market.

The market will temporarily continue to be called Nasdaq Japan but will be renamed ''Hercules'' on Dec. 16.

OSE President Goro Tatsumi said that termination of the alliance with the Nasdaq Stock Market will cause few problems for listed companies and investors, saying they ''will not be affected.''

As for the main principle in operating the market, he said, ''We will take quality as more important than quantity.''

''We would think of merging the market with other markets for start-ups in the future,'' he also said.

The Nasdaq Japan market was launched in June 2000, but the U.S. Nasdaq operator announced on Aug. 16 the termination of its business cooperation, saying the market had failed its expectations, such as the number of listed companies.

Three companies on the market have since delisted themselves, as the disappearance of the ''Nasdaq'' name will make the market less attractive for them.

As of Tuesday, the number of listed companies on the market was 104.

The OSE plans to organize promotion sessions with companies in Tokyo and Osaka this month in a bid to attract new firms to the market.