Tokyo Osaka Merger

Japan Exchange Group has claimed that the merger between Tokyo Stock Exchange and Osaka Securities Exchange will create the third largest stock market of the world on Number of Listed stock basis. The combined exchange is expected to have a market capitalization of $4.2 trillion with 3,423 listed stocks. The major goal behind the merger was to attract more foreign funds by providing more efficient trading platform and to face the increasing competition among stock markets worldwide.

As it happens with all the mergers, JPX is claiming that the merger between Tokyo and Osaka will reduce the operational cost and improve transactional speed. The TSE is already third globally on the basis of trading volume, next to NYSE Euronext and NASDAQ OMX, with a trading value of $3.04 trillion in the first five months of 2013. But there’s only a very small margin that separates it from the Chinese bourses that had a $2.94 trillion combined trading value on the Shanghai Stock Exchange and the Shenzhen Stock Exchange in the same period.

However, on the basis of number of listed companies, TSE was at seventh position and after the merger with Osaka, it has jumped to third position. Bombay Stock Exchange is standing firmly at first position with 5,230 listed companies and Canadian Market operated by TMX Group is standing at second position with 3,971 listed companies.

There are various parameters on which stock exchanges are ranked. If you want to know more about it, please visit World Federation of Exchanges website.

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