Japanese regulators register platform to trade unlisted shares
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Japan’s Financial Services Agency registered Smartround Securities as a brokerage to facilitate secondary market trading for unlisted shares. This initiative aims to broaden private markets and increase capital flow to domestic startups, which previously relied primarily on IPOs or third-party acquisitions for liquidity. Industry experts, including Sylvain Thieullent of Horizon Trading Solutions and Jeremy Tan of Tiger Fund Management, noted that the platform is intended to improve the quality of the IPO pipeline and enhance corporate governance through increased transparency and digitized records.
Consequences
Unlisted companies may face higher compliance burdens as founders and management must meet specific disclosure requirements to access the platform. Increased liquidity and improved price discovery are expected to help growing businesses secure capital more efficiently while providing investors with greater oversight.
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