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Korea, Japan bourses mull cross-trading

Korea and Japan’s bourse operators are considering cross-trading as part of efforts to strengthen their footing amid rising competition among global exchanges, an official said Tuesday.

The Korea Exchange and the Tokyo Stock Exchange held the first round of working-level talks on the issue late last month, according to a ranking official at the Korea Exchange.

“No concrete plan has materialized yet, but talks are set to continue as both exchanges are eager to expand their reach,” the official said.

The two exchanges had signed a memorandum of intent in 2005 on increasing bilateral cooperation, including cross-trading, but the deal didn’t lead to actual cross-trading.

The move comes as the KRX is stepping up efforts to boost its global presence. Earlier this year, KRX Chairman Kim Bong-soo said the KRX is looking into introducing real-time cross-border trading with bourses around the world, such as Hong Kong and Japan.

The TSE, Asia’s largest and the world’s second-largest stock exchange by market capitalization, has been facing competition from other regional bourses in Shanghai and Hong Kong. The TSE has the same opening and closing hours as the KRX, which is the world’s 16th-largest bourse by market capitalization. 

(Yonhap News)