LSE to forge alliance with Tokyo


The Tokyo Stock Exchange has decided to tie up with the London Stock Exchange, and is set for an official alliance accord when TSE President Taizo Nishimura visits the UK in late February, Kyodo News reported today, citing exchange officials.

The officials said the TSE and the London exchange envisage an operational alliance, including developing financial products and mutually listing exchange-traded funds, Kyodo added.

The TSE, Asia's biggest bourse, has been pursuing stronger ties with overseas bourses. Last month it announced a strategic alliance with the NYSE Group under which they will develop and study opportunities in trading systems and technology, investment products, and governance.

The TSE is also promoting tie-up negotiations with the Chicago Mercantile Exchange as well as Shanghai, Singapore and other Asian bourses.

Nasdaq Stock Markets's £2.7 billion takeover bid for the LSE failed on Saturday, with the US exchange saying it had won just 0.41 per cent of acceptances for its offer for Europe's largest share market.

The world's stock exchanges have been increasingly pursuing alliances and mergers as they come under pressure from customers to offer global services and cut fees. Competition is also becoming more intense, with a group of investment banks planning to create a pan-European equity trading platform this year.