NYSE near deal with Tokyo exchange

Tokyo Stock Exchange President Taizo Nishimuro said Tuesday that negotiations for an alliance with the New York Stock Exchange were “very close” to completion and that he expected an announcement to be made as early as today.

Nishimuro and NYSE Group Inc.’s chief executive, John Thain, have met several times during the last week about forging greater cooperation between the two exchanges.

Nishimuro first brought up the idea of an alliance last year, when the NYSE announced it would acquire Paris-based stock exchange operator Euronext.

Both of the executives spoke Tuesday at the Japan Society, but neither confirmed completion of a cooperation agreement. Nishimuro made his comments about the timing of an announcement to reporters after his speech. He also predicted at a news conference in Tokyo last week that an announcement might be forthcoming.

“It is important that the leaders of the two largest stock exchanges have a strong relationship, and we do,” Thain said during his speech. An alliance could be a step toward creating a financial market with operations in the U.S., Europe and Asia.

Covering three major time zones has become a priority for the NYSE, which is now in the midst of planning its integration with Euronext. Rival Nasdaq Stock Market Inc. is still pursuing a hostile takeover of the London Stock Exchange and has already expressed interest in striking a deal in Asia.