Exchange-traded funds such as the Nasdaq-100 Index Tracking StockSM (Amex: QQQ) or similar Japanese instruments such as a Japanese version of Nasdaq QQQ on the newly opened Nasdaq Japan Market; and futures and options based on Nasdaq indices (see fact sheet) to be traded on the OSE derivatives market.
The signing of the MOU will be immediately followed by a due diligence review of the products that could potentially be listed on the OSE and the Nasdaq Japan Market. As part of this, Nasdaq and the OSE are agreeing to discuss product designs, computer systems, and other aspects related to these listings. It is expected that the new products will begin trading in early 2001. "Together with our friends at the Osaka Securities Exchange, The Nasdaq Japan Market is bringing new investment opportunities to Japanese investors," said Frank G. Zarb, Chairman and CEO of the National Association of Securities Dealers, Inc. (NASD®), and The Nasdaq Stock Market. "One of these is the Nasdaq-00 Tracking Stock (QQQ), which along with other exchange-traded funds, have been enormously successful in the U.S. We expect that investors in Japan will find them as appealing as investors in the U.S. already do."
"By listing derivatives products based on the Nasdaq-100 Index® on the OSE derivatives market, member securities firms and investors shall be able to trade Japan-U.S leading derivatives products more efficiently," said Goro Tatsumi, President and CEO of the Osaka Securities Exchange. "In addition, the listing of the Nasdaq QQQ shall provide an opportunity for arbitrage with derivative products of the Nasdaq-100 Index and generate a higher expectation for enhancing the liquidity in Japan of both the Nasdaq-100 Index derivatives and Nasdaq QQQ. The OSE is quite firmly confident that the addition of these new Nasdaq products in combination with the cash and derivatives markets shall greatly contribute to the further development of Japan's securities market."
Tatsuyuki Saeki, President and CEO, Nasdaq Japan, Inc. Market, commented, "We recognize that the continued growth of the Japanese cash and derivatives markets are important in the further development of The Nasdaq Japan Market. By working to bring these Nasdaq-branded products to market, we aim to strengthen The Nasdaq Japan Market's position in the marketplace. This initiative underlines our continuing commitment to offer Japanese investors a wider selection of quality investment products." The Osaka Securities Exchange was established on April 1, 1949, as a membership organization under the Japanese Securities and Exchange Law and is one of Japan's oldest and most respected securities exchanges. In order to keep pace with growing diversified needs, the OSE introduced a fully automated computerized trading system, which is regarded as one of the most advanced systems in the world. Also, the OSE is the largest derivatives market in Japan. Nikkei 225 futures trading is well established as a key product among stock index futures traded on the world's futures exchanges. For more information, visit www.ose.or.jp
The Nasdaq Japan Market is an electronic securities market for the growth of capital and globalization of the Japanese economy. The Nasdaq Japan Market was established on the basis of the Business Cooperation Agreement between Nasdaq Japan, Inc., and the Osaka Securities Exchange, as a section of the Osaka Securities Exchange on May 8, 2000. The first day of trading commenced on June 19, 2000. Nasdaq Japan, Inc., the marketing arm of The Nasdaq Japan Market, is a 50-50 joint venture by the NASD and SOFTBANK CORP. Leveraging the strength of the Nasdaq brand and market know-how of The Nasdaq Stock Market®, The Nasdaq Japan Market offers a highly transparent and efficient market with fair prices to ensure investors the utmost confidence in their investment decisions. For more information, visit www.nasdaq-japan.com.
The Nasdaq Stock Market lists nearly 5,000 companies, has a larger dollar volume, and trades more shares per day than any other U.S. market. Nasdaq is a subsidiary of the National Association of Securities Dealers, Inc. (NASD®), the largest securities-industry, self-regulatory organization in the United States. For more information about Nasdaq, visit the Nasdaq Web site at www.nasdaq.com or the Nasdaq NewsroomSM at www.nasdaqnews.com.
