Under the agreement, the two Exchanges will consult and cooperate on issues of mutual interest in order to strengthen the Markets. Also, the Exchanges agreed to exchange information deemed to be beneficial to maintain the efficiency and integrity of the Markets.
Mr. Takuo Tsurushima, President & CEO of Tokyo Stock Exchange, Inc. comments "This MOU is an opportunity to further strengthen the relationships between our Exchanges, and to work for the development of both markets."
Tokyo Stock Exchange, Inc. is the premier exchange of Japanese cash equities and derivative products both in Japan and from a global perspective. The stock trading volume of TSE in 2004 boasted 378 billion shares, an increase of 20 percent from the previous year, which positioned the TSE as the central market of Japan , occupying 95.4 percent of the total volume of stock trading in Japan . In 2004, the TSE also recorded the daily average of trading volume of 1,539.7 million shares, and the daily average of trading value of JPY 1,394.8 billion. At the end of December 2004, the number of listed Japanese companies is 2,276, and their market capitalization reaches JPY 364.6 trillion.
In order to meet diversified needs of investors, the TSE started trading of ETFs and REITs in July and September 2003, respectively. In addition to its core Japanese equity market, TSE provides markets for derivatives products such as long-term Japanese government bond futures and TOPIX index futures. With respect to these cash and derivative products, the TSE, as a self regulative organization, continuously makes every effort for providing a fair, transparent, and efficient market.
The Surabaya Stock Exchange - SSX is a leading exchange for fixed income and derivatives market in Indonesia . The SSX was officially established in 1989 in Surabaya , the provincial capital city of East Java . As the first privately managed exchange in Indonesia , the SSX operates two offices in Surabaya (head office) and Jakarta (operational office).
Initially, the establishment of the SSX was to support the development of capital market and the economy in the east region of Indonesia . Currently the SSX is facilitating three markets: stock trading for small medium scale companies, bond trading / reporting for corporate and government bonds, and derivatives trading for stock index futures. In 2004, the number of corporate bonds listed on the SSX reached 245 series with total value of USD 6.43 billion, while the government bonds registered 48 series with total value of USD 42.98 billion. The daily average of corporate bond trading value is about USD 8.33 million and for government bond is about USD 244.4 million.
To facilitate trading of bond in the OTC market, the SSX operates the bond trading and reporting system, called Over the Counter Fixed Income Service (OTC-FIS). Strengthening its role as a leading exchange for fixed income securities, the SSX is also operating other systems such as the Indonesian Government Securities Trading System (IGSTS) used by the Indonesian Inter Dealer Market Association and the Ministry of Finance Dealing System (MoFIDS) for government bond buy back auction system.
The SSX is currently developing a trading system for exchange traded government and corporate bonds, called Fixed Income Trading System (FITS). In addition to its core Indonesian fixed income market, the SSX provides market for derivatives products in stock index futures. Derivatives products currently traded on the SSX are LQ45 Futures (underlying Jakarta Stock Exchange's LQ45 index), DOW Futures (underlying Dow Jones Industrial Average index) and Japan Futures (underlying Dow Jones Japan Titan 100 index
