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Japan exchanges to merge in 2013


TOKYO - Japan's two major bourses have agreed to merge in about January 2013, creating the world's second-largest stock exchange, reports said Saturday. The presidents of the Tokyo Stock Exchange (TSE) and Osaka Securities Exchange (OSE) reached a basic agreement Friday on the merger, the Nikkei business daily reported, citing unnamed sources. The two will integrate their operations within a few years after the merger by reorganizing into four units specialising in cash stocks, derivatives, settlement and self-regulation, the Nikkei and Yomiuri newspapers reported. The exchanges both declined to confirm the reports, but the Nikkei and Yomiuri said the companies would both hold board meetings on Tuesday. The Tokyo Stock Exchange is the biggest stock exchange in Japan, while the Osaka exchange serves as the nation's largest market for derivatives trading. They have agreed to value the Tokyo exchange at about 1.7 times the value of the Osaka bourse, the reports said. The merger will create the world's largest stock exchange after NYSE Euronext, they added. Companies listed on TSE and OSE had a total market capitalization of around $3.7 trillion as of the end of September, the newspapers said. The merger is aimed at boosting Japan's competitiveness, as regional bourses, such as Singapore, have successfully lured international firms for listings. TSE will carry out a tender offer for the OSE shares around mid-2012 after gaining approval from the Japan Fair Trade Commission for the integration plan, the Nikkei said. PHL defers hitching up to ASEAN Link Meanwhile, the Philippine Stock Exchange (PSE) said, in a disclosure on its website posted on Friday, that it “decided to defer its participation in the ASEAN Link, or the Intra-ASEAN trading connectivity platform scheduled to be launched by 2012. The PSE said it will exert efforts “to generate further interest and support for the project from its local brokers and the investing public." It clarified though that it “continues to be part of the other current initiatives of the ASEAN Exchanges such as the “ASEAN Stars"—a list of the 30 “most exciting stocks in the sub-region of Asia. — with AFP/ELR, GMA News
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