Operators of the Jasdaq over-the-counter market and the Nasdaq Japan Market on the Osaka Securities Exchange are discussing integration, market sources said Wednesday.
The merger talks were prompted by strong calls from securities firms that want to cut costs by eliminating redundant stock markets, the sources said.
The OSE and the Japan Securities Dealers Association, which established the Jasdaq OTC market, plan to hold talks with the Nasdaq Stock Market of the United States when its executives come to Japan in March, they said.
The Nasdaq Japan market, which is located at the OSE, was established in May 2000 to help young and growing firms raise funds.
A total of 86 firms are listed on the market.
The Jasdaq OTC market was created in 1963 chiefly for startup and midsize companies. A total of 929 firms are listed on it.
Both markets are facing financial difficulties due to slumping stock prices and the high cost of investing in trading systems.