NYSE and TSE collaborate to support cross-border investment between the U.S. and Japan

By Edlyn Cardoza

The New York Stock Exchange, part of Intercontinental Exchange, Inc., and Tokyo Stock Exchange, Inc. announced a new agreement to support cross-border investment between the U.S. and Japan by collaborating in product development, marketing, and information sharing.

The two exchanges signed the memorandum during the visit of Japanese Prime Minister Fumio Kishida to the NYSE. The agreement was finalised in a ceremony on the iconic NYSE trading floor.

The NYSE and TSE have developed a cooperative relationship over decades, including signing an agreement on cooperation in February 2000 and establishing a strategic alliance in January 2007. Given the expanding role of capital markets and an evolving business environment that includes advances in digitalisation, the two exchanges have agreed to strengthen and further advance their relationship to promote and support the development of both exchanges’ businesses.

“This agreement represents an important evolution in the longstanding relationship between the New York Stock Exchange and the Tokyo Stock Exchange as well as supporting cross-border investment between two of the world’s leading economies,” said Lynn Martin, NYSE’s President. “Prime Minister Kishida’s participation in the signing of this agreement during his visit to the NYSE underscores the importance of our capital markets and the critical role that public companies play in the lives of the citizens of both nations. We are excited to be expanding our relationship with the Tokyo Stock Exchange and look forward to working together for years to come.”

“It is a great honor to make this agreement with the NYSE to deepen cooperation for the development of the Japan-U.S. capital markets, on the occasion of Prime Minister Kishida’s speech at the NYSE,” said Hiromi Yamaji, President & CEO, Tokyo Stock Exchange. “In recent years, expectations for exchanges, which play a fundamental role in capital markets, have been increasing in the areas of sustainability and fintech. By further strengthening and advancing our cooperative relationship with the NYSE, the largest exchange in the world, we hope to enhance the diversity of investment products on both exchanges and strengthen cooperation on information dissemination, thereby meeting the expectations of investors and other stakeholders.”

“In addition, as the public and private sectors in Japan are pushing forward with joint initiatives to realise a ‘New Form of Capitalism,’ we hope that this agreement will contribute by improving the investment environment, among other things,” Yamaji continued. “Through this collaboration with the NYSE, Japan Exchange Group and TSE will continue to contribute to further development of the capital markets in both Japan and the U.S in their role as a fundamental capital market infrastructure.”

To further invigorate cross-border investment between the U.S. and Japan and develop the capital markets of both countries, the two exchanges have agreed to work together in three key areas. The agreement focuses on, first, the development of investment products; second, marketing activities targeted at U.S. and Japanese investors; and third, the exchange of information on sustainability, the use of digital technologies, market operations and other topics.