Nasdaq Japan calls it quits


Masayoshi Son's Softbank has a 43% stake in the Nasdaq Japan venture

Staff and wires

TOKYO, Japan -- The U.S. Nasdaq Stock Market has decided to withdraw from the Japanese market, closing its joint venture Nasdaq Japan and ending its ties with the Osaka Securities Exchange.

Nasdaq Japan and the OSE said on Friday their business cooperation agreement covering the Nasdaq Japan market will finish on October 15.

But the OSE said it will continue to operate an emerging company market, to be known as the Japan New Market.

The 98 companies now listed on the Nasdaq Japan market will trade on this section of the OSE. The Osaka exchange said there would be no change in listing rules and Nasdaq Japan said there would be no disruption to trading.

The decision was taken at a board meeting of Nasdaq Japan, a joint venture between the U.S. Nasdaq Stock Market, Japanese Internet company Softbank Corp., and several stockbrokers.

There had been speculation over the past week that the joint venture would cease and that Nasdaq would withdraw completely from Japan.

"A review of our strategic options going forward led us to the conclusion that due to economic and market conditions this was the only option remaining," Nasdaq Stock Market President Rick Ketchum said in a statement released Friday by Nasdaq Japan.

Global network

When the Nasdaq Japan market for emerging companies was set up two years ago it was intended to be part of a global Nasdaq network allowing around-the-clock trading in Japan, the U.S. and Europe.

The Nasdaq Japan Market began trading in June 2000. Nasdaq Japan had cumulative losses of about 5.3 billion yen ($45 million) at the end of last year.

Softbank, which holds 43 percent of the joint venture and is controlled by Internet pioneer Masayoshi Son, has seen its shares slip this week on reports that operations would likely come to an end.

Softbank closed Friday at 1250 yen, up 0.4 percent after going as low as 1061 yen last Friday. That was its lowest price since January 1998.