Agreement has been struck to develop a new stock price index in Japan. Japan Exchange Group (JPX), the exchange operator formed from the merger of the Tokyo Stock Exchange and Osaka Securities Exchange, are to combine with Nikkei to build the new product.
JPX is currently the publisher of the Tokyo Stock Price Index and Nikkei is the publisher of the Nikkei 225 Index.
The new index will consist of companies that have listings on the cash equity markets within the combined JPX Group. That means it will include companies from the TSE 1st Section, TSE 2nd Section, TSE Mothers, OSE 1st Section, OSE 2nd Section and JASDAQ markets.
Only preliminary information about their intentions is currently available. For the next step, JPX and Nikkei plan to carry out a consultative exercise in order to develop a fuller framework for the new index at the time the equity markets are integrated, which is currently inked in for July 2013. Their aim is to launch the new index before the end of the year.