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LONDON (Kyodo) The London Stock Exchange has proposed an operational tieup with the Tokyo Stock Exchange aimed at attracting more companies from emerging economies like China and inviting more Asian investment funds, officials said Friday.

The operators of the two bourses are discussing possible cross-listing of exchange-traded funds and joint development of a stock-trading system, the officials said, adding no capital tieup plan is on the table at this point.

The move comes amid ongoing realignment among stock exchange operators around the world.

In June, New York Stock Exchange Group Inc., the operator of the NYSE, and Euronext N.V., the operator of stock exchanges in Amsterdam, Brussels and Paris, agreed to merge under a holding company.

Meanwhile, the London Stock Exchange PLC has been a takeover target by the NYSE’s rival, Nasdaq Stock Market Inc., since earlier this year.

Nasdaq Stock Market has bought a major stake in LSE.

The TSE has also been in tieup talks with the NYSE, TSE President Taizo Nishimuro said late last month.

Although he withheld details, sources familiar with the discussions said they are looking into the possibility of holding up to 10 percent equity stakes in each other after the TSE goes public in 2009.

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