From The Exchanges

November 01, 2007

Tokyo May Go For The Gold

The Tokyo Stock Exchange (TSE) has plans to cross-list a gold ETF next spring, and may cross-list the streetTRACKS Gold ETF (AMEX: GLD), according to an article in the Nikkei financial publication.

The TSE expects the gold ETF to be just one in a range of commodity-related products it will eventually list as part of a move to diversify its operations. The Osaka Securities Exchange (OSE) recently launched its own gold-based ETF, but the fund simply tracks a gold price index rather than owning actual bullion, as GLD does. The OSE fund is managed by Nomura Asset Management. Japanese regulations do not currently permit ETFs to own physical gold, but those laws are set to change in the near future.

The TSE has been vocal lately about expanding its listings beyond stocks, and recently said that it was looking to list foreign ETFs. The TSE signed an alliance agreement with NYSE Euronext in January and a related technology consulting agreement was announced August 28. Although there are numerous gold ETFs trading worldwide, the alliance makes it all the more likely that the TSE’s anticipated gold ETF will be the NYSE-listed GLD.

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