Tokyo and Osaka in merger talks, says report

Move would bring together Tokyo’s and Osaka’s relative strengths in equities and derivatives trading

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The Tokyo Stock Exchange is close to agreeing a deal to buy the Osaka Securities Exchange in the latest bourse merger to hit the headlines, according to a report from Nikkei, the Japanese newspaper.

The talks began back in March when a wave of exchange consolidation was sweeping the globe, although the two sides have found it hard to agree on how the merger would proceed, reports the newspaper.

Both exchanges have released statements denying they have decided to merge.

The tie-up would bring together Tokyo’s dominant equities business with Osaka’s strong position in derivatives trading.

The combined group would have a value larger than the London Stock Exchange or Chicago’s CBOE, according to a Bloomberg report.

Throughout 2011, the world’s biggest exchange groups have been exploring possible mergers in a bid to cut costs and offer a broader selection of services.

While many of the plans fell through, Deutsche Börse and NYSE Euronext are still on track to complete a merger that would create the world’s largest exchange group.