TSE And LSE To Increase Cooperation

by Mary Swire, for LawAndTax-News.com, Hong Kong

26 February 2007

The Tokyo Stock Exchange and the London Stock Exchange on Friday announced details of an agreement aimed at enhancing their international presence through co-operation on access arrangements and the development of new products.

This is the first time that the two exchanges have agreed to work together, and it is expected that the co-operation will bring benefits for investors, issuers and member firms.

A task force, composed of senior staff from both exchanges, will shortly begin a series of regular meetings to consider development opportunities in several key areas, and identify matters on which the London stock Exchange and Tokyo Stock Exchange will work together over the long term.

Issues for immediate consideration include:

• The operation and regulation of markets for growth companies;
• The creation and promotion of new jointly traded products; and
• Co-operative schemes to encourage access by member firms to each other's markets with the eventual aim of providing a round-the-clock trading environment.

In addition, the exchanges will share information on technology, as they both deliver next generation systems to their markets.

Chris Gibson-Smith, Chairman of the London Stock Exchange announced that:

"The Tokyo Stock Exchange is an immensely important global market, and we see our co-operation agreement with it as an exciting opportunity to broaden the scope of the services that we are able to offer issuers, investors and member firms."

Taizo Nishimuro, President & CEO of the Tokyo Stock Exchange added:

"Taking into consideration the environment surrounding market operators, it is critical for us to explore the possibility for satisfying exchange's various stakeholders. In this context, Tokyo Stock Exchange is delighted to commence talks with London Stock Exchange, one of the world's leading exchanges."

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