After more than half a year of talks, Tokyo Stock Exchange Group Inc. and Osaka Securities Exchange Co. have finally decided to merge in January 2013, a crisis-driven move in response to growing pressure from international rivals.
"The TSE could become one among (many) local exchanges from (its position) as a leading world financial center," a TSE official said of the decline in the bourses' international presence, with the Shanghai Stock Exchange exceeding the TSE in terms of average daily trading value in 2010.
The Tokyo and Osaka bourses had to overcome their long-standing rivalry and shareholder opposition before agreeing last week to merge into a holding company, riding on the crest of consolidation moves among exchanges worldwide.