Tokyo Commodity Exchange to defer merger with Japan Exchange

January 14, 2012

By AKI FUKUYAMA / Staff Writer

Tokyo Commodity Exchange Inc. (TOCOM) has decided to postpone for the foreseeable future a merger with the Tokyo Stock Exchange Group Inc. (TSEG) and Osaka Securities Exchange Co. (OSE).

TOCOM, which operates an exchange for gold and other commodities, is expected to finalize the decision at a board meeting on Jan. 17.

TOCOM discussed management integration with the OSE, which uses a transaction system made by the same manufacturer as its own. A merger could have enhanced efficiency by enabling joint use of the system. However, the talks were halted after OSE said in March it would enter negotiations to integrate its management with TSEG.

TSEG and OSE have yet to decide which of their transaction systems will be used after their integration. From January 2013, a holding company called the Japan Exchange Group Inc. will become the umbrella for the Tokyo Stock Exchange Group Inc. (TSEG) and Osaka Securities Exchange Co. (OSE). TOCOM will reconsider a merger after it is decided what system the integrated group will adopt.

By AKI FUKUYAMA / Staff Writer
  • 1
submit to reddit

More AJW