A letter was sent today to the Osaka Securities Exchange (OSE) formally giving notice of termination of the Business Cooperation Agreement (BCA) between the OSE and NASDAQ Japan, Inc. The termination will become effective on October 15, 2002.
NASDAQ Japan, Inc. is dedicated to an orderly transition as it winds down operations. Companies listed on the NASDAQ Japan Market will retain their listing on the OSE, and thus there will be no disruption to trading. The access of these companies to the capital markets will be continued without interruption. In addition, NASDAQ Japan has offered to the OSE the use of its brand until the end of this year.
Despite attracting nearly 100 companies to the NASDAQ Japan market in its first two years, the Board of Directors determined that under the current economic circumstances the venture could not be sustained.
Rick Ketchum, president, The NASDAQ Stock Market and member of the NASDAQ Japan Inc. board stated, "NASDAQ deeply regrets having to take this step in Japan. However, 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. The decision to wind down our operations in Japan in no way changes NASDAQ's commitment to our international strategy and we will continue to leverage market opportunities, particularly in Europe in the near term."
Yoshihisa Katsuya, president of NASDAQ Japan said, "This was a truly difficult decision for all members of the Board to take. We thank all those who have supported our efforts over the past two years and wish to assure all issuers and investors that we will work in close co-operation with the Osaka Stock Exchange and other parties to ensure a smooth transition."
NASDAQ is the world's largest stock market. With nearly 4,000 companies, NASDAQ lists more companies and trades more shares per day than any other U.S. market. Over the past five years, NASDAQ has outpaced all other U.S. markets in listing IPOs. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, media and biotechnology industries. With operations internationally, NASDAQ is a key driver of global capital formation.
For more information about The Nasdaq Stock Market, visit the Nasdaq Web site at http://www.nasdaq.com or the Nasdaq NewsroomSM at http://www.nasdaqnews.com.
