Sapporo Securities Exchange Unveils Blueprint for "PRO Frontier Market," Targeting Startups and Regional Growth Sectors
The Sapporo Securities Exchange (SSE) has officially released the regulatory framework for its upcoming professional-investor-focused equity market, tentatively titled the Sapporo PRO Frontier Market (SPFM). In a public consultation document, the exchange outlined a flexible listing structure designed to compete with the Tokyo Pro Market by lowering barriers for high-growth startups while incentivizing specific regional industries.
The SPFM is positioned as a stepping stone for unlisted startups, aiming to accelerate their growth through capital access before they transition to general markets like the SSE Main Board or the Ambitious market.
The "S-Adviser" System
Central to the SPFM’s architecture is the introduction of the "S-Adviser" system, modeled directly after the Tokyo Stock Exchange’s "J-Adviser" regime. Under this framework, the exchange delegates the authority to investigate listing eligibility and monitor compliance to certified private entities rather than conducting the examinations entirely in-house.
S-Advisers will be required to:
- Assess the "listing eligibility" of applicant companies.
- Provide ongoing support and advice on disclosure and corporate governance post-listing.
- Assist in maintaining liquidity, potentially acting as liquidity providers themselves.
To qualify as an S-Adviser, a firm must demonstrate sufficient financial health and employ at least three "S-QS" (Qualified Specialists) with over three years of experience in corporate finance advisory.
Flexible Listing Criteria
In a move to attract early-stage ventures, the SSE has stripped away traditional numerical listing hurdles. The SPFM will not impose specific requirements regarding:
- Number of shareholders.
- Market capitalization at listing.
- Years of operation.
- Profit levels.
Instead, the market will rely on a principle-based approach where the S-Adviser certifies that the company has appropriate internal controls, governance systems, and disclosure capabilities relative to its size and maturity. Trading will be strictly limited to professional investors ("Specific Investors" as defined by the FIEA), and margin trading will not be permitted.
Strategic Fee Incentives
While the standard listing fee is set at 2.5 million JPY, the SSE is deploying an aggressive discount strategy to attract companies in sectors vital to the regional and national economy.
The exchange has introduced a tiered fee structure reducing the listing cost to 1.5 million JPY or 2.0 million JPY for companies generating at least 50% of their sales or profits from the following four strategic sectors:
- Renewable Energy & Environment: Including wind/solar power, hydrogen, and recycling.
- Agriculture, Forestry & Fisheries: Covering everything from crop cultivation to smart-farming tech.
- Digital Infrastructure: Focusing on AI development, semiconductors, and data centers.
- Hospitality & Tourism: Including hotels and dining, a core component of Hokkaido's economy.
Next Steps
The SSE is accepting public comments on the proposed regulations until January 18, 2026. Following the review period, the exchange is expected to finalize the rules and announce the official launch date, contingent upon coordination with relevant authorities.
Norbert Gehrke
