Nasdaq Japan Inc. is denying reports that it is severing its relationship with the Osaka Stock Exchange, but it is looking for strategic alternatives.

It says that its original agreement with the OSE, signed in April of 2000, projected that the regulatory approval for the NJ Dealer market would be received by the end of March 2001. However, the OSE is yet to submit the rules for the dealer market to their board, a necessary first step in achieving regulatory approval.

“In view of the substantial delay achieving regulatory approval and an increasing awareness of the need for consolidation among market participants, Nasdaq has formally informed the OSE that it will commence exploring alternative avenues for speeding up regulatory approval and implementation of the NJ Dealer market,” says Nasdaq Japan. .

This move is not intended as notice that it wishes to terminate its agreement with the OSE, says the company. “Rather, Nasdaq feels that an objective and independent approach to exploring alternative avenues is the only course of action open to it in order to fulfill the undertakings made to issuers, investors and its shareholders at the time of its inception.”

“Nasdaq wishes to clearly state that its ongoing commitment to bringing Japanese issuers, investors and member companies access to the best possible market platform remains as strong as ever.”