Tokyo exchange seeks LSE alliance

The Tokyo exchange is Asia's biggest

The Tokyo Stock Exchange, Asia's biggest bourse, has said it is in talks with the London Stock Exchange (LSE) to set up a strategic alliance.

Cross-listing funds and co-operating to develop trading systems are among the issues believed to be under discussion.

However, a spokesman for the Tokyo exchange said that a financial tie-up was not on the agenda.

Earlier this month, the Nasdaq signed a co-operative agreement with the Korea Exchange and Japan's Jasdaq.

Global exchanges are looking for partners around the world as the industry witnesses rapid consolidation.

The Nasdaq has built up a 25% stake in the LSE, while the New York Stock Exchange struck a $10bn deal in June to take over the pan-European exchange Euronext - a move that Deutsche Boerse is keen to scupper.