Section Issues: Section and Market Participants

section issues: Citing complaints from market participants about overlapping functions at some of the markets, the FSA proposed integrating the second section and the Jasdaq to make clear the roles of each market, according to The Japan Times. At present, the TSE consists of four markets the first section for big companies, the second section for midsize firms, the Jasdaq comprised of a variety of companies and the Mothers dedicated to startups. In a reform plan drafted by a study group, the FSA also proposed slimming down the composition of the Topix index of all first section issues on the TSE by excluding those whose trading volumes remain sluggish. ; The agency will urge the bourse to start implementing the proposals around the first half of 2022, according to the report. Although the Jasdaq is characterized as an emerging market, it handles some big names, including McDonald's Holdings Co. The FSA proposed setting the minimum market capitalization requirement for the prime market at 10 billion 91 million while taking transitional measures to retain the currently listed small-cap issues. Japan . According to the plan, the TSE will create a prime market, which would be equivalent to the first section, a standard market for stocks listed in the second section and the Jasdaq, and a growth market for those in the Mothers. (news.financializer.com). As reported in the news.