Jasdaq Securities Exchange Inc. on Monday rejected the integration of trading systems with Osaka Securities Exchange Co., casting a shadow over merger talks between the two bourse operators.
Jasdaq President Takashi Tsutsui said the operator of the Jasdaq market for startup firms voted down the idea of integrating systems at a board meeting earlier in the day. Jasdaq has decided to place an order with Hitachi Ltd. to resume the development of its own future trading system as it needs to replace its current one by the fall of next year, he said.
“We need to agree on the final details of conditions for the system integration in order to stop the current development project for the next trading system. The conditions presented today were insufficient,” Tsutsui said.
“But this does not mean we have fully rejected the idea of combining our trading system with the OSE’s. We intend to continue talks,” he added.
Unifying their respective trading systems has been a prerequisite for integrating the two bourses, as it would cut their respective costs over the system.
Jasdaq had paused in the development of its own next trading system in order to discuss system integration with the Osaka bourse operator.