New York and Tokyo Stock Exchange Alliance
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.