The Tokyo Stock Exchange will begin talks with its smaller domestic rival, the Osaka Securities Exchange (8697.OS), on a possible merger, a source with knowledge of the matter said. A wave of mergers and alliances among global exchanges has focused attention on how the TSE will compete, with bourses such as the Singapore Exchange (SGXL.SI) and Australia's ASX (ASX.AX) (ASX.AX) looking to grow bigger by combining operations. The Tokyo and Osaka exchanges would look to build on their respective strengths in a merger, the source said, speaking on condition of anonymity because the plan to start negotiations has not been made public.
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