What is the Japan Association of Securities Dealers Automated Quotation (Jasdaq)?
The Japan Association of Securities Dealers Automated Quotation (Jasdaq) stock exchange is part of the Japan Exchange Group (JPX). The platform, like Nasdaq, targets new venture businesses and is purely electronic.
How Japan Association of Securities Dealers Automated Quotation (Jasdaq) Works
The Japan Securities Dealers Association established the forerunner of Jasdaq in 1963 as an over-the-counter stock trading platform. This method became an electronic market in 1991 and the Jasdaq Securities Exchange in 2004. This shift was crucial for Jasdaq’s stock exchange status. Before 2004, the Jasdaq allowed OTC trading without a government stock exchange authorization.
The Nasdaq is part of a robust ecosystem of Japanese stock exchanges, including the Osaka Securities Exchange (OSE), Nagoya Stock Exchange, Sapporo Stock Exchange, Fukuoka Stock Exchange, and Mothers Exchange, known for focusing on small and emerging companies.
Similar to other nations, Japan’s stock exchanges have seen consolidations in recent years. The OSE bought Jasdaq in 2010. The OSE and TSE united in 2013 to establish the Japan Exchange Group. The JPX ranks third in the world, behind the New York Stock Exchange and Nasdaq.
Actual Jasdaq Example
To list on a Japanese stock exchange, companies must fulfill criteria such as minimum shareholders, market capitalization, net assets, and years of business. Since it targets early and venture-stage companies, the Jasdaq has fewer listing criteria than the TSE, which hosts more established companies.
The TSE First and Second Sections, Jasdaq, and Mothers Exchange comprise the JPX. The TSE First Section has the tightest listing standards, followed by the Second. Listing criteria are more flexible for Jasdaq and mothers.
Conclusion
- Japanese stock exchange Jasdaq targets developing firms—one of the Japan Exchange Group subsidiaries.
- Jasdaq began as a 1963 OTC platform.
- The Tokyo Stock Exchange’s first and second divisions have stricter listing standards than the Jasdaq.
