The Tokyo Stock Exchange said today it would dissolve its joint venture in Japan with the London Stock Exchange, with the TSE running the market for professional investors on its own.

The two bourses launched the Tokyo AIM market in June 2009, targeting professional investors willing to invest in start-up companies with less stringent listing and disclosure requirements than on the main Tokyo bourse.

The venture, owned 51 per cent by the TSE and 49 per cent by the LSE, has listed only one company so far.

The market relies on securities firms to vet applicants and oversee the company after its listing. But brokers have been reluctant to take on the risk attached to approving applicants.

Reuters