Nasdaq Stock Market Inc. and the Osaka Securities Exchange said Friday they have agreed to terminate their business cooperation agreement involving Nasdaq Japan Inc., effective Oct. 15.
The move comes after two loss-making years for Nasdaq Japan, dealing a fresh blow to the U.S. firm's goal of becoming a 24-hour global exchange. The news prompted some companies to consider abandoning the bourse.
Following the termination of the alliance, the Nasdaq Japan Market will be tentatively renamed as the Japan New Market and will continue to be operated by the OSE.
Companies currently listed on the Nasdaq Japan Market will remain listed on the Japan New Market, while listing, trading and other market rules will remain intact, the OSE said.
Moreover, the Nasdaq brand may be used until the end of the year, it added.
Nasdaq Japan has been losing money for two years and has signed up less than two-fifths of its targeted companies. Currently, 98 companies are listed on the Nasdaq Japan Market.
Nasdaq and Softbank Corp., Japan's largest investor in Internet companies, each own 43 percent of Nasdaq Japan, with the remaining 14 percent owned by 13 U.S. and Japanese brokerages, including Nomura Holdings Inc. and Goldman Sachs Group Inc.