NYSE inks pact with Tokyo SE
The New York Stock Exchange (NYSE) and Tokyo Stock Exchange (TSE) announced an alliance on Wednesday that extends the NYSE’s global reach and could lead to an eventual combination of the world’s two largest financial markets.
By Agencies |
NEW YORK: The New York Stock Exchange (NYSE) and Tokyo Stock Exchange (TSE) announced an alliance on Wednesday that extends the NYSE���s global reach and could lead to an eventual combination of the world���s two largest financial markets.
The broad, non-exclusive agreement announced by NYSE chief executive John Thain and TSE president Taizo Nishimuro allows the two stock markets to cooperate on joint developments such as financial products, mutual listings and technology.
The deal comes amid a backdrop of mass consolidation between domestic and global exchanges, highlighted by the NYSE���s transformation into the first trans-Atlantic market with its recent acquisition of Paris-based exchange operator Euronext. The NYSE, which is competing fiercely with the Nasdaq, just weeks ago announced that it had led a team of investors to buy a 20% stake in BSE.
The agreement with the TSE gives NYSE an entree into the Pacific. It is also a step toward a possible merger or acquisition between the two exchanges when the TSE becomes a public company in 2009. Thain made it clear during the news conference that the two companies planned some form of combination in the future, saying, ���We���re also setting the stage for a potential capital linkage.���
The two exchanges did not offer any details of what form that would take, but Nishimuro said in prepared remarks, ���I strongly believe that this agreement will be a good starting point for a much stronger tie-up with the NYSE and will contribute to the benefit of various market participants of our respective markets.���
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Under the terms of the agreement, NYSE Group and the TSE will establish working groups to discuss such things as infrastructure, technology and trading issues, as well as market data products and regulation and governance of listed companies. They also will examine ways to enable companies who are listed on only one exchange to have better access to investors from the other.Download
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