New York and Tokyo Stock Exchange Alliance

January 31, 2007

Comments

The New York Stock Exchange and Tokyo Stock Exchange have announced an alliance that “is also a first step toward a possible merger or acquisition between the two exchanges when the TSE becomes a public company in 2009.” In the short term, it “allows the two stock markets to cooperate on joint developments such as financial products, mutual listings and technology.”

This is not an isolated event:

The deal comes amid a backdrop of mass consolidation between domestic and global exchanges, highlighted by the NYSE’s transformation into the first trans-Atlantic market with its recent acquisition of Paris-based exchange operator Euronext NV. The NYSE just weeks ago led a team of investors to buy a 20 percent stake in India’s largest financial market, the Mumbai-based National Stock Exchange.

This trend is just further evidence of a truly global economy. The implications for national-level regulation and taxation will take a while to sort out, I suspect.

3 responses to “New York and Tokyo Stock Exchange Alliance”

yetanotherjohn

January 31, 2007 at 12:16 pm

I think the mutual listings may be the biggy. Add in the London Stock Exchange (which I think was recently nixed) and you could have had 24 hour trading of NYSE stock on major markets.
Triumph

January 31, 2007 at 1:56 pm

This trend is just further evidence of a truly global economy.

First Bush tries to sign away our port security to a foreign company–now our economic security is at risk to a foreign power. What’s next?
yetanotherjohn

January 31, 2007 at 2:18 pm

Triumph,

Or is it a foreign power’s economic security is is at risk to a US company? But it all has to be Bush’s fault.