The Korea Exchange (KRX) and Tokyo Stock Exchange (TSE) Group have signed an agreement that could lead to greater collaboration for cross-listed products and services.
Under the terms of the memorandum of understanding, KRX and TSE Group will initially offer their stock quotes on each other’s websites. The exchanges will also discuss means to develop trading infrastructure to allow more convenient order placement and dissemination of market information for their members.
The two bourses will also look at ways to promote the mutual listing of exchange-traded funds and other derivatives while investigating avenues to increase efficiencies and reduce costs via a cooperative study of IT systems.
“In the rapidly evolving global exchange environment, cooperation and coordination between global exchanges are becoming increasingly important as a strategy toward growth and survival,” said KRX chairman and CEO Bongsoo Kim. “In particular, our cooperative agreement with TSE Group will expand capital flow between our countries through the creation of a leading capital market network in Asia and enhance the competitiveness of both our markets.”
Atsushi Saito, president and CEO of TSE Group, said “by further strengthening our relationship and concentrating our expertise to implement a diverse range of measures, we will be able to improve market access and promote understanding on both markets by all our market participants, and invigorate the capital circulation between Japan and Korea.”
The TSE Group is currently in discussions with the derivatives-focused Osaka Securities Exchange with the aim of completing a merger deal by January 2013.