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Tie-up of TSE’s Mothers, OSE’s Jasdaq examined

JIJI

Japan Exchange Group Inc. will consider a future merger of the Tokyo Stock Exchange’s Mothers section and the Osaka Securities Exchange’s Jasdaq section, both for startups, the president of the TSE’s operator said.

Akira Kiyota, president of TSE Inc., made the remark in an interview Tuesday before the TSE and OSE integrate their cash stock trading markets next Tuesday.

“Through the integration, we aim to be the most preferred exchange in Asia,” Kiyota said. He expressed the group’s intention to list more exchange-traded funds, including those targeting non-Japanese shares.

“We will now need to address how to sort out overlapping functions of the Mothers and the Jasdaq,” Kiyota said.

“We aim to realign them after building a certain degree of consensus by taking a certain amount of time and following procedures,” he said.

The president of TSE Inc. also stressed the need to strengthen collaboration, if not mergers, with exchanges in Sapporo, Nagoya and Fukuoka.

A so-called comprehensive exchange should be realized if possible, Kiyota said, although it will not be easy to overcome differences over self-regulatory rules and trading rules with the Tokyo Commodity Exchange.

OSE eyes commodities

OSAKA
JIJI

Osaka Securities Exchange Co. may launch a commodity futures market on is own, without seeking an alliance with an existing operator in or outside Japan, OSE President Hiromi Yamaji has said.

“We may consider tying up with a Japanese or overseas exchange, or may opt to go it alone,” Yamaji said.

OSE and Tokyo Stock Exchange Inc., both subsidiaries of Japan Exchange Group Inc., or JPX, are slated to integrate their cash stock markets next Tuesday and their financial derivatives markets next March.

The market integrations will “help improve the JPX group’s operational efficiency and provide more convenient services,” Yamaji said.

The group is ready to offer attractive products and review its trading rules and systems, he said. Whether to extend trading hours will be studied after the integration of the derivatives market, he added.

Yamaji indicated the JPX group’s integration with an overseas exchange operator will be unlikely.

“It is difficult for leading exchanges in different countries to realize a cross-border integration,” Yamaji said, adding the JPX group will seek alliances with overseas operators on a product-by-product basis.