US and Tokyo markets move closer

The move comes amid consolidation in the industry

The New York Stock Exchange (NYSE) and the Tokyo Stock Exchange have formed an alliance to develop financial products and promote mutual company listings.

The move gives the New York exchange access to the Pacific and could result in a broader tie-up in the long term.

The non-exclusive alliance comes as stock markets are consolidating globally, with the NYSE recently buying pan-European stock exchange Euronext.

More recently the NYSE bought a 20% share of India's key stock exchange.

Global partners

News of the alliance between the New York and Tokyo stock markets, which had been widely expected, was unveiled by John Thain and Taizo Nishimuro, the respective heads of the exchanges.

Global exchanges are looking for partners as a means to cut costs, and be more attractive to both investors and companies seeking to raise money.

US exchanges, among others, are seeking to diversify their scope beyond domestic boundaries by branching out in overseas markets.

After the New York Stock Exchange bought Euronext for $14bn, the technology based Nasdaq tabled an offer for the London Stock Exchange - though the move was rejected.

The latest tie-up comes in advance of the Tokyo Stock Exchange going public in 2009.