Rolling Machines

Tuesday, December 28, 2010

Nasdaq Looking at New Foray into Japan - CNBC

U.S.-based Nasdaq OMX Group is looking at having a second stab at setting up a market in Japan with the Osaka Securities Exchange, hoping to attract investors from emerging Asian economies, domestic media reported.

The two stock market operators opened the Nasdaq Japan market for start-ups in 2000 but closed it two years later after its order-matching system failed to find favour with Japan's No.1 broker Nomura Securities and other major players.

The new exchange could open as early as January 2012 and would offer night and small lot trading to facilitate participation by a broad variety of investors, the Yomiuri newspaper reported. Kyodo news agency said the new market may also allow trading of stocks listed on the Tokyo Stock Exchange.

The Osaka Securities Exchange, Japan's No.2 bourse, declined to comment.

"We have been in touch with Nasdaq as we are cooperating on various projects including the planned use of Nasdaq's derivatives system at the OSE, but the OSE cannot say if the reported plan has been discussed," spokesman Masahiro Yada said.

The OSE merged with Japan's biggest market for start-ups, the Jasdaq, this year. Jasdaq later absorbed the Nasdaq Japan successor, the Hercules market. The Tokyo Stock Exchange also has a section for start-ups, the Mothers market.

While the Tokyo Stock Exchange dominates Japanese stock trading, the Osaka Securities Exchange dominates derivatives trading.

OSE shares dropped 1.2 percent to 417,500 yen on Tuesday morning, underperforming a 0.4 percent decline for the Nikkei stock average.

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