TSE News

NYSE Euronext and Tokyo Stock Exchange To Explore Network Linkage

Update : Mar. 02, 2011

[Tokyo Stock Exchange, Inc.]

NEW YORK, March 1, 2011-Atsushi Saito, President and CEO of the Tokyo Stock Exchange (TSE), and Duncan Niederauer, CEO of NYSE Euronext (NYX), today met in New York to sign a letter of intent to identify options to give customers of each exchange accessibility to the other's markets through a network linkage.

The Secure Financial Transaction Infrastructure (SFTI®) hub, being planned by NYSE Euronext and "arrownetTM," TSE's trading and information network, will play an important role in the consideration of options for establishing a network linkage between the markets. Using "arrownetTM," customers of the TSE would be able to access NYSE Euronext markets without costly dedicated network connections. Similarly, NYSE Euronext customers who use SFTI would be able to access TSE markets with their existing infrastructure. Customers of both exchanges could take advantage of this multi-functional network to translate order formats and so avoid the need for costly development work. Market data would also be available over the network. Both parties would also explore the potential of jointly expanding the network linkage to Asia, which would enable investors to more easily trade cross-borders and globally.

This latest agreement builds on the existing relationship between TSE and NYSE Euronext which dates back to 1987, when Japanese Government bond futures were launched on the LIFFE market in London. Recently, NYSE LIFFE has listed futures on the TOPIX index, under license from the TSE, and there is a clearing link in place for the daily transfer of open positions from NYSE LIFFE to TSE. In October 2009 TSE activated its options market trading platform, the Tdex+ System, which is powered by NYSE Euronext's LIFFE CONNECT® technology, and the TSE will migrate its futures market to the platform in the 4th quarter of 2011.

In acknowledging the letter of intent between the two exchanges, Duncan Niederauer said: "We are privileged to host Saito-san today in New York and welcome the opportunity to move forward with this new initiative aimed at delivering new services and value to our respective customers. Our collective goal is to leverage our technology and expertise to create a global trading community with direct access to the world's foremost markets. Bringing more innovative products to our customers and more customers to our products will be to everyone's advantage."

Atsushi Saito said: "I am very pleased with the signing of the letter of intent with NYSE Euronext. TSE has been enjoying a partnership with NYSE Euronext in many aspects, and I am excited about taking another initiative for a new service with our cutting-edge technologies. "arrownetTM" is TSE's highly reliable and robust trading and information network. By connecting with NYSE Euronext's SFTI network, "arrownetTM" will give the investors of Europe and US more opportunities for investment in Asia, and at the same time, Asian markets will have exposure to capital outside of the region. TSE is proud to build this bridge between the continents, and hope that this will consolidate our position as a hub exchange in Asia.

About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets-the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca-represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index, and is the only exchange operator in the S&P 100 index and Fortune 500. For more information, please visit:
NYSE Euronext

About Tokyo Stock Exchange
Tokyo Stock Exchange, Inc. (TSE) is one of the leading global exchanges and the largest securities market in the Asia-Pacific region. TSE is best known for its equities market, valued at US$3.8 trillion as of the end of January 2011. It also boasts the largest market for Japanese securities derivatives such as Japanese Government Bond (JGB) and TOPIX (Tokyo Stock Price Index) futures. For more information, please visit:
Tokyo Stock Exchange

Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext's plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext's current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext's results to differ materially from current expectations include, but are not limited to: NYSE Euronext's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext's reference document for 2009 ("document de référence") filed with the French Autorité des Marchés Financiers (Filed on April 22, 2010 under No. D.10-0304), 2009 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.