The London Stock Exchange (LSE) and the Tokyo Stock Exchange (TSE) have formed a business alliance that will involve sharing IT assets and collaboration on development projects.
The co-operation agreement was signed last Friday and is ultimately intended to enable round-the-clock trading.
Robin Paine, LSE chief technology officer, says the agreement will provide mutual benefits.
‘We have a reference data service that Tokyo could use as well as our European networks which could distribute their data more effectively throughout Europe and vice versa,’ he said.
Collaboration opportunities will be identified over the next six months.
‘The partnership may lead to future systems integration but the present focus is looking at which assets both we at the LSE and TSE have to establish areas of mutual benefit,’ said Paine.
‘For example Financial Information Exhange protocol connectivity is something we plan to implement and TSE may have similar plans, so it makes sense to investigate and share the results across both exchanges,’ he said.
Movement of IT staff between the two exchanges is under consideration and would potentially make a lot of sense, says Paine.
Gartner research director Peter Redshaw says it is unlikely the exchanges will integrate their systems.
‘The simple plumbing challenge of how to run over each other’s systems depends on whether they choose to go for remote access, have a local copy of each system or amend current systems to trade extra products,’ said Redshaw.
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