The Over the Counter (OTC) Market in Japan
The Over the Counter (OTC) market in Japan is a unique and often misunderstood trading platform. It is a venue for brokers, dealers and investors to peacefully and effectively trade securities outside the traditional stock exchanges. In some cases, the OTC market can offer better liquidity, greater flexibility and more diverse offerings than the recognized Japanese stock exchanges.
The OTC market in Japan is composed of two types of exchanges: the Jasdaq Standard and the Jasdaq Growth. Jasdaq Standard is Japan’s leading market for companies with a strong track record and ample financial resources, while Jasdaq Growth is designed for new attractive businesses that wish to expand and offer new products or services. While the exchanges are separate, they are usually connected by the same broker.
In contrast to the Japanese stock exchanges, the OTC market is generally easier and less expensive for listed companies to use. There are no listing fees, and a company does not have to disclose its financials in the same detailed manner as the stock exchange. Companies do, however, need to abide by certain rules, such as not issuing false information and keeping books up to date.
The OTC market is also able to assist companies that wish to become listed but have not been able to meet the stringent requirements demanded by the stock exchanges. It is often the best promising option for startup companies and those in need of capital. Its ease of entry and lower costs make it a great alternative.
The OTC market enables investors and traders to buy and sell a wide variety of unlisted, and often exclusive, securities. It also allows for a broader range of trading instruments, including derivatives, futures and options. The OTC market can offer liquidity on thinly traded securities — shares which may not be traded publicly on a regular basis.
The OTC market in Japan is highly dynamic and provides investors with a secure trading platform where they can efficiently trade securities. It features a deep order book that allows for sophisticated high frequency trading of securities. The OTC market is also known for its low-cost structure and its lack of restrictions, making it appealing to a diverse number of investors.
Finally, the OTC market in Japan is a secure and efficient means of trading and investing in securities. It is less expensive and more flexible than the exchanges, and can often offer liquidity to thinly traded securities. It also offers a safe and efficient means of trading various derivative products. The OTC market in Japan is a great option for brokers, dealers and investors to trade securities.
