Osaka Securities Exchange

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Osaka Securities Exchange

Founded	1949
Headquarters	Osaka, Japan
Key People	Michio Yoneda, president and CEO
Products	Equities, stock index futures and options and equity options
Web site	http://www.ose.or.jp/e/

1 Introduction
2 Product Development
3 History
4 News
5 References
6 External links

Introduction

The Osaka Securities Exchange (OSE) is an integrated electronic platform listing cash equities, futures and options, combining Japan's second-largest securities exchange, the Hercules exchange for growth stocks - formerly known as Nasdaq Japan - and the country's largest derivatives platform.

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The OSE, which demutualized in 2001 and listed on its own board in 2004, is Japan's largest venue for index futures and options, and total contract volume passed 100m in 2007^[1].

Product Development

History

The birthplace for futures transactions: "Dojimakomekaisho"

The origin of securities exchanges stems from Edo Period, when the exchange for rice & crop was established in Osaka, center of Japanese economy. Each prefecture set up its own warehouses in Osaka for shipping & preservation of their rice (to be taxed by the government), and sold them to merchants. One of the most famous merchants was "Yodoya", which was based upon the southern part of Yodoyabashi area. Some other merchants gradually gathered to create one market. This market was called "Yodoya-Komeichi", which was the first securities exchange in the nation.

Later on, this market was moved to Dojima in 1697, so-called "Dojimakomekaisho", which was a physical market to trade in rice-tickets or physical rice. In 1716, Cho-gomai transaction was introduced and recognized by the government in 1730, which is said to be the origin of futures transactions in Japan.^[2]

News

JSDA eyes Jasdaq stake sale to Osaka bourse by end of August

June 17, 2008

(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, June 17_(Kyodo) _ The Japan Securities Dealers Association, the largest stakeholder in Jasdaq Securities Exchange Inc. for start-up businesses, expects it will finish selling part of its stake in Jasdaq to the operator of the Osaka stock market through a tender offer by the end of August, the JSDA chairman said Tuesday.

"If the price-setting procedure (for Jasdaq shares) goes smoothly, I think it could finish around that time at the earliest," JSDA Chairman Toshio Ando said at a news conference.

The JSDA, the brokerage industry's self-regulating group, plans to sell at least a controlling stake in Jasdaq out of its roughly 72 percent stake in it to Osaka Securities Exchange Co.

Jasdaq formed a new management team last week and agreed on a proposed integration of its trading system with the OSE, paving the way for the OSE to launch a tender offer for Jasdaq operator shares this summer.

The OSE is expected to eventually merge its Hercules market for emerging companies with the Jasdaq market.

The expected merger between the Jasdaq market, which lists about 950 start-up companies, and the OSE's Hercules market, which lists over 170 such companies, will realign the flagging Japanese bourses for emerging companies to pit the Jasdaq-OSE integrated market against the Tokyo Stock Exchange's Mothers market.

Trading activities for start-up markets in Japan have languished especially since the dramatic fall of Internet firm Livedoor Co. in 2006 due to accounting fraud.

Jasdaq fell into the red with a group net loss of 1.53 billion yen in fiscal 2007 that ended March 31. Its trading value has been more than halved to 10.8 trillion yen in 2007 from 23.3 trillion yen in 2006.^[3]

Central Japan Commodity Exchange, Kansai Commodities Exchange And Osaka Securities Exchange Sign MoU

May 27, 2008

The Central Japan Commodity Exchange (C-Com), Kansai Commodities Exchange (KEX) and the Osaka Securities Exchange Co., Ltd. (OSE) today announced the signing of a Memorandum of Understanding (MoU) and co-operation among the three exchanges.

The three exchanges share the belief that the MoU will contribute to the mutual development of their respective markets, and pave the way to provide greater conveniences to market participants.

Based on this MoU, the three exchanges will hold discussions to explore the possibility of co-operation in areas that will enhance mutual benefits, such as activities to promote derivatives deeply rooted in the Kansai region, development of new products, and joint utilization of electronic trading platforms.

KEX’s Chairman, Mr. Makoto Iwamura, stated: “I believe the establishment of this cooperative framework will enhance the market functions of our respective exchanges. A stronger collaboration among the three Osaka based exchanges is expected to provide substantial contributions to the development of the futures markets in Osaka, and development of markets in Japan as a whole.”

C-Com’s Chairman & CEO, Mr. Fumihiko Kimura, said: “I expect this cooperative relationship among the three exchanges to lead and encourage movements to inspire fresh air into the commodity and securities industries, and to accelerate the development of both commodity futures and the financial and capital marketplace.”

OSE’s President & CEO, Mr. Michio Yoneda, commented: “We have embarked on the first step to enhance a cooperative relationship through the signing of this MoU with C-Com and KEX. Our three exchanges share a common ground in Osaka, the world’s birthplace of futures transactions, and this MoU will help strengthen the financial functions of the Osaka markets and promote the development of the Japanese market.^[4]