The Tokyo Stock Exchange (TSE) said today it is in talks with the London Stock Exchange about an alliance.
Japanese business daily Nihon Keizaireported on the tie-up on Saturday, saying it might include cross-listing of exchange-traded funds as well as development of trading systems and strategies for revitalising bourses for start-up companies.
TSE spokesman Toru Onoda said no details have been decided but that a capital alliance has not been discussed.
The Tokyo bourse said last week that it is talking with the New York Stock Exchange on a capital alliance that could bring together the world's two largest equities markets as early as 2009, when the TSE plans to list its shares.
The world's stock exchanges have been increasingly joining hands in alliances and mergers to share the heavy burden of investing in next-generation systems, as well as keep up with competition and the globalisation of information and trading.
This year saw the Nasdaq Stock Market build up a 25 per cent stake in the LSE, the NYSE struck a $10 billion deal to take over Paris-based Euronext, and Chicago's two futures exchanges announced plans to merge.