The Tokyo Stock Exchange and the New York Stock Exchange are in talks to form an alliance to combat illegal trading, according to a Financial Times report.
The newspaper report says the NYSE and TSE are planning to share information, primarily on equities, in a bid to uncover instances of illegal trading between the two countries.
A TSE spokesman told the paper that the agreement will focus on insider trading as well as "manipulative transactions".
The TSE and NYSE are already part of the GEM stock market alliance which, according to the FT, some see as a way of sharing listings and regulatory services rather than linking the exchanges. Other GEM partners include the London Stock Exchange and the Toronto Stock Exchange.
It is understood that the TSE and the NYSE could finalise an agreement by the end of April or early May.