From Saturday's Nikkei:
Issued: June 12, 2000
Internet brokers eager to list
Internet-based brokerages are rushing to go public, including E*Trade Securities Co., which plans to list on the new Nasdaq-Japan market in the September-December quarter, The Nihon Keizai Shimbun reported.
H.I.S. Kyoritsu Securities Co. plans to register on the over-the-counter market, while Nikko Beans Inc. intends to list on the Tokyo Stock Exchange's Mothers market.
Behind the moves are the need to raise funds to expand computer systems to deal with the soaring number of individual investors who trade online. The online brokerages also aim to improve their name recognition by listing.
In addition to the three online securities firms, DLJdirect SFG Securities Inc., whose shareholders include Sumi-tomo Bank and Sakura Bank, is considering going public next year. Monex Inc., in which Sony Corp. holds a stake, is also believed to be considering going public.
E*Trade was established in October 1998 after Softbank Corp. acquired a midsize securities firm, while H.I.S. Kyoritsu Securities was set up in January 1999 by Hideo Sawada, president of H.I.S Co., a leading discount travel agent. Nikko Beans, a subsidiary of Nikko Securities Co., was founded in May 1999.
Prior to deregulation of the industry in December 1998, there were restrictions on brokerages going on public.
Online trading spread with the liberalization of brokerage commissions in October 1999. It accounted for about 10% of all the individual stock trading at the end of March, thanks to the lower brokerage commissions.
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