The Jasdaq Securities Exchange started operations Monday, converting from an over-the-counter stock market to become the nation's sixth securities exchange.
It was the first launch of a securities market in Japan since the founding of the Sapporo Securities Exchange in 1949.
Jasdaq serves as a leading market for startups. It has 942 listed issues.
At a ceremony to commemorate Jasdaq's new start, Kiyoshi Nagano, who concurrently serves as Jasdaq chairman and president, said, "We will carry out highly transparent management of the exchange."
Financial Services Minister Tatsuya Ito, who attended the ceremony, said, "I want (Jasdaq) to grow strongly as an attractive market by utilizing its experiences and achievements to date."
The Jasdaq exchange opened higher but later lost its upward momentum and fluctuated in a narrow range amid a lack of fresh trading incentives.
The creation of the new securities exchange is expected to widen options for investors and promote competition among exchange markets.
With the conversion from an over-the-counter market, Jasdaq can accept market orders from investors without specific buying and selling prices, and begin large-lot after-hours trading.
The diversification of trading methods is expected to prompt more institutional investors to participate in trading on the Jasdaq market.
As exchanges for startups, the Tokyo Stock Exchange has the Mothers market and the Osaka Securities Exchange has the Hercules market.