NYSE Group, Inc. Chief Executive Officer John A. Thain and Tokyo Stock Exchange, Inc. President and Chief Executive Officer Taizo Nishimuro today signed a letter of intent that establishes a strategic alliance between the two world financial market leaders to jointly develop and explore new opportunities in trading systems and technology, investor and issuer services, investment products, and governance and regulation. The agreement, which is non-exclusive, also sets the stage for a potential capital alliance between NYSE Group and the TSE.


“We welcome this opportunity to work more closely on areas of mutual interest with Mr. Nishimuro and his colleagues at the Tokyo Stock Exchange, the world’s second largest equity market,” Mr. Thain said. “We are committed to the success of this strategic alliance, which will benefit and create growth opportunities for both markets and our respective customers, advance our global vision, and further strengthen the ties between Japan and the United States .”

“Tokyo Stock Exchange is pleased that both exchanges are proceeding to the next level of cooperation. I strongly believe that this agreement will be a good starting point for a much stronger tie-up with the NYSE and will contribute to the benefit of various market participants of our respective markets,” said Mr. Nishimuro.

Specific Areas of Cooperation

Under the terms of the agreement, NYSE Group and the TSE will establish formal working groups that will meet regularly to engage in ongoing dialogue and development activities on specific areas of mutual interest, which will include: Information and market infrastructure systems and technology, trading services, market data products, issuer and investor services, cross-marketing and promotional activities, and listed company regulation and governance. They will examine cooperation in the listing process to enable issuers who are listed on only one Exchange to have improved access to investors in the other.

NYSE Group and the TSE will explore global strategic trends affecting each organization’s respective business and will exchange personnel if necessary. The chief executive officers of each organization will confer at least quarterly to review progress on developmental initiatives and on implementation of the agreement.

Additional Background

1. The New York Stock Exchange has 19 listed companies from Japan

2. New York Stock Exchange listed securities benefit from the world’s lowest overall cost of trading according to the second-quarter 2006 Global Trading Cost Analysis report by Elkins/McSherry, a State Street Company providing independent transaction cost analysis. Tokyo Stock Exchange ranks second in overall trading cost efficiency.

3. On June 4, 2002 , TSE and NYSE signed a memorandum of understanding (MOU) to share market surveillance information in their respective markets;

4. On Feb. 7, 2000 , the S&P Global 100 Index launched as the first equity stock index covering global companies. This index is a collaboration of the NYSE, Standard & Poor’s, TSE, and the Deutsche Borse.