NYSE, Tokyo in tie-up

NEW YORK (CNNMoney.com) -- The NYSE Group and Tokyo Stock Exchange have formed a broad strategic alliance that could pave the way for a financial partnership between the two exchanges.

The companies made the announcement Wednesday, saying they would team up to develop new technology, products and trading systems. The agreement also calls for them to cooperate on governance and regulation issues.

The world's No. 1 and No. 2 exchanges will meet regularly to discuss topics such as trading services, cross-marketing and the listing process.

At a press briefing in New York, NYSE Group (Charts) CEO John Thain said the alliance should make it easier for people to trade between the two markets and for firms to cross-list on the exchanges.

Both firms said in a statement that the strategic partnership paves the way for a financial partnership between the two groups.

"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," Thain said.

Tokyo Stock Exchange CEO Taizo Nishimuro said the alliance would be a good starting point for "a much stronger tie-up with the NYSE."

The announcement is the latest move by Thain to extend the NYSE's global reach.

Earlier this month the NYSE Group agreed to buy a 5 percent stake in India's National Stock Exchange, and NYSE Group shareholders approved late last year the firm's merger with the pan-European Euronext exchange.

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