Japan exchanges to merge in 2013

Japan’s two major stock markets have agreed to merge in about January 2013, creating the world’s second-largest stock exchange.

The presidents of the Tokyo Stock Exchange (TSE) and Osaka Securities Exchange (OSE) reached a basic agreement yesterday on the merger, the Nikkei business daily reported, citing unnamed sources.

The two will integrate their operations within a few years after the merger by reorganzing into four units specializing in cash stocks, derivatives, settlement and self-regulation, the Nikkei and Yomiuri newspapers reported.

The Tokyo Stock Exchange is the biggest stock exchange in Japan, while the Osaka exchange serves as the nation’s largest market for derivatives trading.

They have agreed to value the Tokyo exchange at about 1.7 times the value of the Osaka bourse, the reports said.

The merger will create the world’s largest stock exchange after NYSE Euronext, they added.

Companies listed on TSE and OSE had a total market capitalisation of around $3.7 trillion as of the end of September, the newspapers said.

The merger is aimed at boosting Japan’s competitiveness, as regional bourses, such as Singapore, have successfully lured international firms for listings.

Sources AFP