The Tokyo Stock Exchange (TSE) and Osaka Securities Exchange Co Ltd (OSE) said on Tuesday they would merge to cope with sluggish market conditions in Japan and build scale amid a flurry of consolidation amid global rivals. The move will create a powerhouse in Japan dominating both cash equities and derviatives that will rank as the third-largest securities exchange globally, trailing only the NYSE Euronext and Nasdaq OMX in terms of market value of listed firms.But the new exchange still lacks a convincing strategy for expanding overseas, seen as a key challenge given the weak prospects for equities trading and new listings as the economy sputters along with little hope for strong growth.The two said they would merge operations in January 2013 after the larger but unlisted Tokyo bourse takes a majority stake in the listed Osaka exchange in a public tender offer.The OSE will keep its listing as the surviving entity after the merger.
NYSE Euronext is a global operator of financial markets and provider of trading technologies. Shares of NYX fell by 1.03% or $-0.28/share to $26.80. In the past year, the shares have traded as low as $23.24 and as high as $41.60. On average, 3952490 shares of NYX exchange hands on a given day and today's volume is recorded at 2016370.
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