Nasdaq Japan wooed Nagoya bourse as new ally in May.
Nasdaq Japan Inc., the co-operator of the Nasdaq Japan market with the Osaka Securities Exchange (OSE), proposed to the Nagoya Stock Exchange in early May that it and the exchange tie up to set up a new market, a senior official at the Nagoya bourse said Friday.
The official quoted a senior Nasdaq Japan official as telling the Nagoya bourse, ''We do not intend to renew the (tie-up) contract with the OSE. Unless we can find a new business partner, we will pull out of Japan.''
But the Nagoya exchange told the Nasdaq Japan official, ''It would be pointless engaging in an enterprise similar to the one which your company has done with the OSE,'' according to the official.
The Nagoya side gave the negative response because the Nasdaq Japan market had been unable to attract the initially planned number of companies to list on the bourse, the official said.
But the official said, ''It is also true that we found the tie-up proposal attractive due to the Nasdaq brand.''
In late July, however, Nasdaq Japan told the Nagoya exchange that Nasdaq would withdraw from the Japanese market, the Nagoya official said.
Nasdaq Japan appeared to be considering the creation of a new market based on an Internet-based high-speed transaction system for investors.
The OSE earlier said it would end its cooperative arrangement with Nasdaq Japan Inc. on Oct. 15.
With the termination of the OSE-Nasdaq Japan alliance, the OSE will tentatively rename the Nasdaq Japan market as ''Japan New Market'' and run it under the new brand. Shares in the firms listed on the market will be traded on the successor bourse.
The Nasdaq Japan market was set up on the OSE premises in June 2000 as a fund-raising venue primarily for start-up ventures. About 100 companies are listed on the market.
Last month, Nasdaq Stock Market Inc. of the United States announced its withdrawal from Japan. Nasdaq Japan is owned 43% each by Softbank Corp. and Nasdaq Stock Market.
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|Publication:||Japan Weekly Monitor|
|Date:||Sep 9, 2002|
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