Japan's Jasdaq Securities Exchange has rejected a proposal to integrate its trading infrastructure and merge its operations with its suitor, Osaka Securities Exchange (OSE), in a move that could hamper any deal between the two market operators.
The trading integration was a pre-requisite to a deal being negotiated by OSE to acquire a 73% stake in Jasdaq held by the Japan Securities Dealers Association (JSDA).
According to press reports Jasdaq, which is Japan's biggest market for start-ups, has opted to continue with plans to recruit Hitachi to develop a new trading platform that will be implemented towards the end of next year.
However Jasdaq president Takashi Tsutsui told reporters that, although this proposal has been rejected, the exchange would continue exploring options for trading integration with OSE.
But Jasdaq has also come out in opposition to plans by JSDA to sell a controlling stake in its business to OSE and argues that one single investor shouldn't have overall control of its operations.
Merger talks between the two Japanese exchanges began in December. OSE reportedly wants to merge its own junior market, Hercules, with Jasdaq to cut costs and compete with the Tokyo Stock Exchange's market for start-ups.