The London Stock Exchange (LSE) and Tokyo Stock Exchange (TSE) have taken another step toward establishing their joint venture TOKYO AIM, a new market for growing companies in Japan and Asia.
The two exchanges today published the rulebook for TOKYO AIM for public comment. The rulebook was developed following consultation with market participants and sets out regulations for securities on the market and the rules for nominated advisors (J-Nomads).
Similar to the LSE’s regulations for its existing growth market AIM, J-Nomads will be required to assess companies’ suitability for the market, both prior to admission to TOKYO AIM and on an ongoing basis, while they are listed.
TOKYO AIM is set for launch this spring, subject to regulatory approval by the Japanese Financial Services Agency.
Companies listed on TOKYO AIM will benefit from the potential to reduce costs as a result of a principles-based regulatory approach that does not demand compliance with J-SOX, the Japanese standards for financial reporting, or the filing of quarterly accounts and the use of International Accounting Standards and US GAAP, in addition to Japanese GAAP.
Clara Furse, chief executive of the London Stock Exchange, said: “TOKYO AIM will play an important role in providing 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.”
“Our strong partnership with the London Stock Exchange has enabled us to make steady progress towards the launch of TOKYO AIM,” added Atsushi Saito, president and CEO of the TSE. “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.”