2011-03-11Source: United News Network.
Facing the risk of being marginalized on the global stage, Tokyo Stock Exchange (TSE) and Osaka Stock Exchange (OSE), two major Japanese stock exchanges, decided to abandon their long-standing hostile stance and discuss the possibility of merger instead. The share price of Osaka Stock Exchange soared by more than 12%.
Qi Teng, president of Tokyo Stock Exchange, told reporters in March 1 1 that he would discuss the possibility of merger with Dawson Mida, president of Osaka Stock Exchange. Considering Japan's land area, economic situation and aging population, it would be a good choice to set up a strong exchange. Qi Teng also said that there was no specific timetable for the merger talks, but the Japanese media quoted Tammy as saying that he hoped to reach a preliminary agreement within a few months. Shares of Osaka Stock Exchange rose 6.9% to 460,000 yen at 10 on Jasdaq Stock Exchange, with the biggest intraday increase of 12.08%.
If Tokyo Stock Exchange and Osaka Stock Exchange merge, the combined market value will surpass Nasdaq OMX Group and become the second largest exchange operator in the world after NYSE Euronext. The combination of the two can also produce complementary effects. Tokyo Stock Exchange mainly deals in spot stocks, while Osaka Stock Exchange mainly deals in Jasdaq Stock Exchange, a derivative financial commodity trading platform with Nikkei 225 index futures as its main products.
According to the statistics of the World Federation of Exchanges (WFE), as of June this year, the total market value of listed companies in Tokyo Stock Exchange reached 3.84 trillion US dollars, which was lower than that of NYSE Euronext's 14.02 trillion US dollars and Nasdaq OMX's 3.95 trillion US dollars. The total market value of companies listed and traded on Osaka Stock Exchange is 2.71100 million USD.
Ray Peto, an analyst at New york O 'Neill Partners, said that the acquisition of Osaka Stock Exchange will make Tokyo Stock Exchange a powerful exchange integrating stocks and derivatives in China. "From a global perspective, derivatives business is more valuable because the competition in cash stock business is fierce, even in Japan, and derivatives are expected to become the main driving force for the growth of exchanges."
At present, Tokyo Stock Exchange is the third largest stock exchange in the world by market value and the fourth largest stock exchange by trading volume. However, the integration trend of global exchanges is considered to be slow, partly because the Tokyo Stock Exchange has repeatedly postponed its initial public offering (IPO) plan. Qi Teng also expressed the hope to continue the listing plan of Tokyo Stock Exchange, and the listing procedure will be started in April, so as to promote the listing before the integration with Osaka Stock Exchange.
Last month, NYSE Euronext and Deutsche B? rse said they were in deep talks about the merger. The London Stock Exchange and Toronto TMX Group also agreed to merge. Asian exchanges are also actively promoting mergers. Last year, the Singapore Stock Exchange proposed to acquire ASX, which runs the Australian Stock Exchange, for $83 million.