Japan Association Of Securities Dealers Automated Quotation (Jasdaq)

What Is the Japan Association of Securities Dealers Automated Quotation (Jasdaq)?

The Japan Association of Securities Dealers Automated Quotation (Jasdaq) is a stock exchange that forms part of the Japan Exchange Group (JPX). It is centered around emerging venture companies and, similar to the Nasdaq exchange, is a completely electronic trading platform.

How the Jasdaq Works

The forerunner to the Jasdaq was a over-the-counter stock trading platform made by the Japan Securities Dealers Association in 1963. In 1991, this system was switched over completely to an electronic market and rebranded as the Jasdaq Securities Exchange in 2004. This progress was urgent for the Jasdaq, as it denoted its formal recognition as a stock exchange. Prior to 2004, the Jasdaq worked with OTC trades yet didn't hold a formal stock exchange license from the government.

Today, the Jasdaq forms part of a robust ecosystem of stock exchanges operating in Japan, which incorporate the Osaka Securities Exchange (OSE), the Nagoya Stock Exchange, the Sapporo Stock Exchange, the Fukuoka Stock Exchange, and the supposed Mothers exchange, which centers around small and emerging companies and owes its name to the phrase "Market of the great development and emerging stocks."

As has been true in numerous countries, Japan's stock exchanges have gone through a series of consolidations in recent years. The OSE acquired the Jasdaq in 2010. In 2013, the OSE and Tokyo Stock Exchange (TSE) merged to form the Japan Exchange Group. Today, the JPX is the world's third biggest exchange behind the New York Stock Exchange and Nasdaq.

Real World Example of the Jasdaq

Companies must meet several criteria to list on a stock exchange in Japan, including a base number of shareholders, market capitalization, net assets and long periods of operation. Due to its attention on ahead of schedule and venture-stage organizations, the Jasdaq's listing requirements are more permissive than the TSE, which has more settled organizations.

Inside the JPX, there are four sections: the TSE First Section, the TSE Second Section, the Jasdaq, and the Mothers exchange. Among these, the TSE First Section has the strictest listing criteria, trailed by the TSE Second Section. The Jasdaq and Mothers exchanges are seriously obliging in their listing requirements.

Features

• The Jasdaq's listing requirements are less rigid than the first or second sections of the Tokyo Stock Exchange.
• The Jasdaq follows its starting points to an OTC platform established in 1963.
• The Jasdaq is a stock exchange in Japan that spotlights on emerging companies. It is one of several auxiliaries of Japan Exchange Group.