TOKYO AIM update

 

TIDMLSE TIDMLSEB 
 
RNS Number : 4233M 
London Stock Exchange Group PLC 
29 January 2009 
 

 
 
Press Release 
 
 
Tokyo Stock Exchange and London Stock Exchange 
publish rulebook for public comment; 
name new growth market "TOKYO AIM" 
 
 
Tokyo/London, 29 January, 2009 - The Tokyo Stock Exchange Group, Inc. ("TSE") 
and the London Stock Exchange Group plc. ("London Stock Exchange") today 
published the rulebook for their new growth market for public comment, and 
confirmed the market's name: TOKYO AIM. The rulebook, which was developed 
following extensive discussion with market participants, sets out the 
regulations for securities on the market as well as the rules for Nominated 
Advisers (J-Nomads). 
 
 
Established and operated as a joint venture between the TSE and London Stock 
Exchange, TOKYO AIM will provide a new funding option for growing companies in 
Japan and Asia, giving them access to a capital market specifically tailored for 
their needs and to a wider investor base, while creating new investment 
opportunities for Japanese and international professional investors. The 
creation of TOKYO AIM became possible following the revision of the Japanese 
Financial Instruments and Exchange Act passed in June 2008. It is anticipated 
that the launch of TOKYO AIM will take place in spring 2009 subject to the 
granting of a license by the Financial Services Agency of Japan. 
 
 
Adopting the AIM regulatory framework, the J-Nomad system will be central to the 
regulation of TOKYO AIM. J-Nomads will be selected and approved by TOKYO AIM and 
will be required to assess companies' suitability for the market both prior to 
admission and on an ongoing basis, guiding them in meeting their obligations as 
public companies. In addition to the support provided by the J-Nomad system, 
companies will also benefit from: 
  *  a choice of either Japanese or English for the disclosure of information; 
  *  the use of International Accounting Standards and US GAAP in addition to 
  Japanese GAAP; and 
  *  the potential to reduce costs as a result of a principles-based regulatory 
  approach that does not demand compliance with J-SOX or the filing of quarterly 
  accounts. 
 
Atsushi Saito, President & CEO of the TSE, said: "We are delighted to be able to 
publish the rulebook for our new joint venture market, as well as to announce 
its official name: TOKYO AIM.  Our strong partnership with the London Stock 
Exchange has enabled us to make steady progress towards the launch of TOKYO AIM. 
The new market will be a platform that attracts and connects companies and 
investors from around the world. The development of this new market structure in 
Tokyo is another step towards the further strengthening of Japan's 
competitiveness in the global capital markets." 
 
 
Clara Furse, Chief Executive of the London Stock Exchange, said: "A stock 
exchange's central purpose is to ensure that companies have access to capital to 
finance innovation, growth and employment. TOKYO AIM will play an important role 
in providing that funding for growing companies in the region. In particular, it 
will provide a suitable framework in which they can develop long-term 
relationships with professional investors, making it easier for them to gain 
access to capital throughout their development; an advantage that has been 
underlined in recent months as public companies in a number of markets have 
increasingly turned to equity markets to raise additional capital through 
further issues". 
 
 
To serve as a vehicle for the organisation and management of a growth market in 
Japan and related activities, TSE and the London Stock Exchange have formed a 
Japanese-incorporated company, held 51 per cent by TSE and 49 per cent by the 
London Stock Exchange. The London Stock Exchange has made an initial cash 
subscription of Yen 98.0 million (GBP728,100 on the date of subscription) for 
its interest in the company. 
 
 
 
- Ends - 
 
 
  For further information, please contact: 
 
 
Tokyo Stock Exchange Group, Inc. 
Masahiro TAKADA, Media Relations: 81-3-3665-1220, [e-mail] 
 
 
London Stock Exchange plc 
Catherine Mattison: + 44 (0)20 7797 1222 
[e-mail] 
 
 
Comments on the TOKYO AIM rulebook should be sent to: 
[e-mail] by 27 February 2009 
 
 
Further details on TOKYO AIM can be found at: www.tokyo-aim.com 
 
 
Notes to editors: 
 
 
In February 2007 the TSE and LSE agreed to consider the opportunities for joint 
work: in the creation and promotion of new jointly traded products; in 
cross-access arrangements and in the operation and regulation of a market for 
growth companies. 
 
 
About the Tokyo Stock Exchange Group, Inc.: 
 
 
Tokyo Stock Exchange, Inc. is the premier exchange for Japanese cash equities 
and derivative products from the perspective of investors both in Japan and 
abroad. In 2008, TSE recorded an average daily trading volume of 2,267 million 
shares, and daily average trading value of JPY 2352.8 billion. This has 
positioned TSE as the central market of Japan. 
 
 
In addition to its core Japanese equity market, the TSE provides markets for 
derivatives products such as long-term Japanese government bond futures and 
TOPIX index futures. Japanese Government Bond (JGB) futures trading, the 
cornerstone of the TSE's fixed income derivatives market and the benchmark of 
the Japanese bond market, continues to thrive on investor demand from across the 
globe. 
 
 
The JGB futures contract is one of the most active long-term interest rate 
futures contracts in the world, with its annual trading volume in 2008 reaching 
10,639 thousand contracts. The TOPIX futures contract, which is actively traded 
by institutional investors, is the leading stock index futures product in Japan, 
with the largest open interest among Japanese stock index futures products. The 
annual trading volume of TOPIX Futures in 2008 was 18,375 thousand contracts. 
 
 
With respect to these cash and derivative products, the TSE, as a self 
regulatory organization, continuously makes every effort to provide a fair, 
transparent, and efficient market. 
 
 For more information on the Tokyo Stock Exchange, go to: 
www.tse.or.jp/english/index.shtml 
 
 
 
About AIM: 
Established in 1995, AIM is the London Stock Exchange's international market 
specifically designed for smaller, growing companies. The market combines the 
benefits of a public flotation with appropriate levels of regulation - a 
principles-based regulatory approach together with high standards of disclosure 
- meeting the needs of international companies and investors. As of the end of 
December 2008, there were over 1,550 companies (of which 317 are non-UK) quoted 
on AIM with a combined market capitalisation of over GBP37.7 billion. AIM's 
regulatory model has enabled its companies to achieve long-term investment; of 
the GBP60.2 billion raised by AIM companies in the 13 years since launch, 
GBP27.8 billion has been raised by companies subsequent to joining the market. 
 
 
About Nominated Advisers (J-Nomads) 
The J-Nomad system is based on the Nomad system, which is central to the 
regulatory structure of AIM. 
 
 
Companies proposing to admit to TOKYO AIM will be required to engage a J-Nomad 
that is approved and monitored by the Exchange; the J-Nomad will have 
responsibility for assessing their suitability for a public market and advise 
them on the admission process. Once on TOKYO AIM, companies must retain a 
J-Nomad at all times, and the J-Nomad must ensure the company's ongoing 
compliance with the TOKYO AIM rules, with particular regard to disclosure 
obligations. 
 
 
Based on experience of AIM in the UK, it is expected that the close association 
between the Nomad and their client companies gives Nomads a powerful incentive 
to ensure that the companies they advise maintain high regulatory standards, in 
order to safeguard their own reputation and investors' trust in their ability to 
bring quality companies to the market. 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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