The Tokyo Stock Exchange Group, Inc. and the London Stock Exchange Group plc published the rulebook that would govern their proposed new venture market to be known as the Tokyo AIM.

The joint venture between the TSE and LSE 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. It will also create new investment opportunities for Japanese and international professional investors. It is expected to launch in the spring, subject to the granting of a license by the Financial Services Agency of Japan.

Adopting the AIM regulatory framework, the new exchange will use the “nomad” system pioneered by London’s AIM, which requires issuers’ nominated advisers (known as nomads) 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. The rulebook, which was developed following discussion with market participants, sets out the regulations for securities on the market as well as the rules for nomads.

Atsushi Saito, president & CEO of the TSE, said, “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, CEO 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”.