London Stock Exchange ties up with Tokyo Stock Exchange

Mumbai: Close on the heels of signing a memorandum of understanding (MoU) with the Tel Aviv Stock Exchange, the London Stock Exchange, the world''s oldest bourse, has agreed to work along with the Tokyo Stock Exchange. (See: )

The two major exchanges would work together to share information technology and develop new products. They would focus on operating markets for growth companies and the creation of jointly traded financial products, the bourses said in a joint statement.

"This is the first time that the two exchanges have agreed to work together, and it is expected the cooperation will bring benefits for investors, issuers and member firms," the statement said.

The move would also help the Tokyo exchange, which has been dented by trading errors and system faults, to improve its public image.

Although the world''s second largest, the Tokyo exchange has been offering investors relatively few financial products. It has also been plagued by a series of system failures. The agreement also aims at providing round-the-clock trading as things evolve, the statement added.

Stock exchanges the world over have been merging and forming alliances to fight competition and to share investment costs of next-generation systems.

The Tokyo exchange and New York Stock Exchange operator NYSE Group Inc. had last month announced a strategic alliance to develop and study opportunities in trading systems and technology, investment products and governance.

The LSE, however, was fighting off successive takeover attempts after the failure of Nasdaq Stock Market Inc.''s $5.3 billion ( 2.7 billion pound) hostile bid.

The LSE is one of the world''s oldest stock exchanges with a history that can be trace back to more than 300 years. Starting business in the coffee houses of 17th century London, the exchange quickly grew to become the city''s most important institution in the world''s financial capital.

LSE also has a regional office in Hong Kong serving customers in the Asia-Pacific region. This helps the LSE to get closer to Asian customers and to attract further Asian companies to London.