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To: Edwin S. Fujinaka who wrote (5297)	6/21/2000 5:23:00 AM
From: Edwin S. Fujinaka	Respond to of 6020

Tuesday, June 20, 2000 EDITORIAL: Nasdaq Japan Ups Ante In Battle For Listings TOKYO (Nikkei)--Nasdaq Japan was launched Monday just as dot-com fever is starting to fade. The Japanese version of the Nasdaq Stock Market has nevertheless raised hope for an upsurge in venture capitalism in Japan. Japan now has three markets for startups: the Over-The-Counter market run by the Securities Dealers Association of Japan; the Mothers operated by the Tokyo Stock Exchange; and Nasdaq Japan, which began operations as part of the Osaka Securities Exchange. Nasdaq Japan means more than just another market for up-and-comers. Its foreign origin and the involvement of a hot-shot Internet player, Softbank Corp. (9984) in its operation makes Nasdaq Japan quite different in character from its rivals. Nasdaq Japan's major selling point is its listing criteria. Based on those adopted by Nasdaq in the U.S., they are marked by lower hurdles for listing and stricter demand for disclosure. Listed companies are required to disclose their quarterly earnings figures and stocks on the bourse will be delisted if they fail to produce a certain amount of transactions. The policy is designed to maintain market health and offer investors higher liquidity and better profit-making chances. Nasdaq Japan's entry has already had a tangible effect on rival markets, inspiring them to move in the same direction. A potentially serious problem could arise in the future from the murky relations and shared responsibility among the three organizations involved in the operation -- Nasdaq Japan Planning Co., which sets basic policies, Nasdaq Japan Inc., and OSE, which regulates the market. Nasdaq Japan needs to take painstaking measures to clarify responsibility and authority among these bodies as well as accountability and transparency in operations. In order to enhance credibility, Nasdaq Japan and the two other markets should make a great effort to prevent insider trading and other illegal acts, in close cooperation with the government's Securities and Exchange Surveillance Commission. They should also consider creating a separate market for delisted stocks. Hopefully, new competition from Nasdaq Japan will lead to more investor-friendly markets for emerging companies. Further expansion of venture capitalism is essential for Japan's economic renewal and it depends to a considerable extent on the fate of these markets for small investors. (The Nihon Keizai Shimbun Tuesday morning edition)