The Tokyo Stock Exchange said it may begin talks with its smaller domestic rival, the Osaka Securities Exchange , on a possible merger aimed at surviving a wave of industry consolidation. A flurry of mergers and alliances among global exchanges has focused attention on the TSE, which is suffering from sluggish trading volumes and a dearth of new listings as investors look elsewhere in Asia for growth. It has ceded ground to faster-growing rivals and is now the world's fourth-biggest by trading volume. Atsushi Saito, the chief executive of the TSE, said combining the TSE's strength in cash equities trading and the OSE's stronghold in derivatives could make for a good combination.
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