Update : Sep. 11, 2007
As the business alliance with the NYSE Euronext moves forward, several initiatives have now been agreed upon.
- IT -
Tokyo Stock Exchange, Inc. (TSE) is progressing towards its goal of implementing the next generation trading system in 2009. In order to achieve a more adequate management of the system capacity and processing capability of this trading system and networks, the TSE and the NYSE Euronext have agreed that the TSE will consider introducing the monitoring program used by the NYSE Euronext, as well as receive an official technology consultation from the NYSE Euronext beginning this fall.
Especially with respect to contingency plans, the TSE is proactively seeking to deepen its expertise on this topic by obtaining knowledge from the NYSE Euronext which has superior experience in this area.
- New Products -
In terms of new products, the TSE will receive support from the NYSE Euronext to offer the NYSE-listed gold ETFs on its market. Although prior administrative approval is a requirement, the TSE seeks to make the listing of such ETFs a reality as early as possible.
In addition, with continued support from the NYSE Euronext, the TSE would like to offer Japanese investors ETFs that track commodities other than gold, foreign stock indexes, or real estate related indexes.
- Listing Systems -
The TSE will also collaborate with the NYSE Euronext to establish a system and structure to exchange information on their respective listing systems. This will include a reciprocal exchange of personnel for set periods of time.
- Increase of Off-Exchange Trading -
To determine how to best handle this issue from the point of view of a stock exchange, both the TSE and the NYSE Euronext will work together to study and conduct research in this area.
The TSE has announced that an ETF tracking the TOPIX index will be listed on the Singapore Exchange Limited (SGX) on September 30th.
As this is the first time (outside of the TSE) that an ETF tracking the TOPIX will be listed in Asia, the TSE sees this as an important first step in its business alliance with the SGX. The TSE seeks to use this opportunity to expand the alliance with the SGX into other mutually beneficial endeavors, and continue moving forward toward a more comprehensive business partnership.