Tokyo Stock Exchange President Taizo Nishimuro indicated Tuesday the bourse will make further efforts to form capital alliances with foreign counterparts to raise its global status.
As global realignment has been under way among major stock exchanges, the TSE “will explore possibilities of capital alliances while concluding business tieups with overseas exchanges,” Nishimuro said in his last monthly news conference as president.
The TSE’s possible capital alliance partners will not be limited to the New York Stock Exchange, he said, adding the bourse could possibly found joint ventures with foreign bourses to set up exchanges in emerging economies.
The TSE has agreed to an operational tieup with the NYSE in various fields such as joint development of trading systems and investment products, with an eye on a future capital tieup through cross-shareholding.
He cited specific schemes of capital alliances with other bourses, including cross-shareholding arrangements, the TSE’s unilateral acquisition of stakes in foreign bourses, and establishment of 50-50 joint ventures to establish markets in emerging economies and develop financial products.
Nishimuro said the TSE should play a wider range of roles on the global stage.
“A stock exchange must play roles as a public institution, not only in one specific country but globally,” Nishimuro said. The TSE should seek a position as the “center for efficient funds flow, especially in Asia,” he added.
Nishimuro will shift to the chairmanship at the largest Asian stock exchange after a shareholders’ meeting in June.
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