how the jasdaq worked
the precursor to the jasdaq was an over the counter stock trading platform created by the japan securities dealers association in 1963 in 1991 this system was converted to an electronic market and rebranded as the jasdaq securities exchange in 2004 this transition was pivotal for the jasdaq as it marked its formal recognition as a stock exchange before 2004 the jasdaq facilitated otc trades but did not hold a formal stock exchange license from the government 1companies had to meet several criteria to list on a stock exchange in japan including a minimum number of shareholders market capitalization net assets and years of operation because of its focus on early and venture stage businesses jasdaq s listing requirements were more lenient than the tse which hosted more established businesses the jasdaq formed part of a robust ecosystem of stock exchanges operating in japan which include the osaka exchange ose the nagoya stock exchange the sapporo securities exchange and the fukuoka stock exchange closure of the jasdaqas has been true in many countries japan s stock exchanges have undergone a series of consolidations the ose acquired the jasdaq in 2008 1 in 2013 the ose and tokyo stock exchange tse merged to form the japan exchange group 2 the jpx is the world s fifth largest exchange as of 2023 behind the new york stock exchange nasdaq euronext and the shanghai stock exchange 3within the jpx there were four sections the tse first section the tse second section the jasdaq and the mothers exchange however these four sections were consolidated when the tse was restructured into three sections the prime market the standard market and the growth market as the components of the jasdaq were folded into the new sections the jasdaq stopped trading on april 4 2022 4