John Thain, NYSE’s chief executive, said: “We believe this strategic alliance will bring greater liquidity and improve access for investors to our market. Combined with Euronext, we are building the world’s first truly global market-place, trading multi-asset class products, across multiple time zones in multiple currencies.”
The TSE, which is still planning to go public before the end of 2009, and the NYSE have been discussing this tie-up since early 2006. Their collaboration dates back to a June 2002 agreement to share market surveillance information.
Both exchanges have also been seeking alliances elsewhere. The TSE signed MOUs on cross-border trading and exchanging information with the Shenzhen Stock Exchange, the Korea Stock Exchange, the Shanghai Stock Exchange and the Taiwan Stock Exchange in July and August 2006, and earlier this month Nishimuro said alliances with the London Stock Exchange and Deutsche Börse could be possible later this year.
The NYSE agreed to buy Euronext in June last year (see: NYSE-Euronext wins landslide shareholder approval) and has also expressed an interest in forming links with China.