In preparing this framework for the new market, the SC studied the structure and operations of similar markets in the United States (Nasdaq) United Kingdom (Alternative Investment Market), Canada (Canadian Dealing Network), France France (Le Nouveau Marche), Japan (Jasdaq), Taiwan (ROC OTC Securities Exchange) and Thailand (Bangkok Stock Dealing Centre). Closed-door consultative sessions were also held with related industry participants - stockbrokers, merchant banks, fund managers, venture capitalists - to obtain their views regarding the structure of this new market.

The intention to establish this new market which, subject to the approval of the Registrar of Companies, is proposed to be called MESDAQ Bhd, which stands for Malaysian Exchange of Securities Dealing and Automated Quotation Berhad, was announced in the 1997 Budget Speech. In November 1996, the SC forwarded a framework paper on the proposed new market for the endorsement of the Minister. Any potential promoters of the new market will have to ensure that all the elements outlined in this framework are embodied in the structure and operations of the market. This framework has been approved by the Minister.

The proposed new market will be independent of the Kuala Lumpur Stock Exchange (KLSE), and will cater for technology based companies, and companies with strong growth potential, but which do not have a profit track record.