Merrill on Wednesday formally opened its new Japanese retail unit, Merrill Lynch Japan Securities, ushering in what many see as a new era for the country's rapidly transforming financial industry as its progresses with its Big Bang reforms.

The reforms, begun on April 1, are meant to bring about more transparent markets and revitalise an industry long dominated by a handful of bemoths.

``From Sapporo in the North to Kumamoto in the South, our objective is to become one of the best, most trusted providers of financial services in Japan,'' said chairman and chief executive officer David Komansky of Merrill Lynch & Co shortly after snipping a white ribbon to open the company's branch in Otemachi, Tokyo's business district.

``We are just at thestart of this effort, with a long road ahead of us before we can claim success. But we are determined to succeed,'' Komansky said.

Merrill's closely watched foray into Japan's retail market is a distinct break with most foreign brokerages' efforts here, which traditionally centre around large institutional clients.

Merrill Lynch Japan Securities will operate a chain of 33 retail branches across the country built out of the ashes of Yamaichi Securities, Japan's fourth largest brokerage before it failed late last year.

The company hopes to tap into some of the estimated 1,200 trillion yen ($8.63 trillion) in personal savings here and is staffed almost entirely with former Yamaichi personnel.

The company is opening the branches on a staggered schedule that runs throughout the summer.

Merrill's attempt to lure Japan's individual investors back into the market comes against the backdrop of one of the nation's most serious economic downturns since the end of World War Two. Unemployment has reached arecord high 4.1 per cent and the benchmark Nikkei 225 stock average -- although showing signs of strength recently -- is still at less than half the level at which it finished the 1980s.

``The Japanese market is seriously depressed,'' Komansky said at a news conference following the opening ceremony. ``But if you just think in terms of the past, you'll miss opportunities for the future.''

Chairman of Merrill Lynch International,Winthrop Smith congratulated the 2,000 Yamaichi recruits, saying their hard work had helped the company get up and running so quickly.

``People forget that we did not acquire an on-going business,'' he said.Komansky said his company was flattered by the attention it had received.``I have heard it said that the opening of Merrill Lynch Japan Securities Co has come to symbolise the Big Bang financial deregulation process in Japan,'' he said.

``If that is true, then we accept this distinction with great humility. We are very mindful of the responsibilities that go with ourrole and we take them very seriously,'' Komansky said.

Merrill has already had an impact on the Japanese market.

Just two days before the ribbon-cutting in Otemachi, rival Nikko Securities opened its first client service centre, which officials conceded was based in part on the Merrill Lynch concept.

The centre is located in the same building as Merrill's office.