The Tokyo Stock Exchange Inc. announced the adoption of a new trading system based on the NYSE Euronext’s Liffe system, for its options trading market.

The new system is scheduled to start in the early first half of 2009. The TSE is also planning to introduce major operational and regulatory improvements, including new market maker functionality for the Japanese market, with the launch of the new system.

Atsushi Saito, president and CEO of the Tokyo Stock Exchange Group says, “The Japanese options trading market contains significant growth potential. We believe promoting this market will bring forth a great investment opportunity for not only the Japanese investor, but investors worldwide. We have chosen NYSE Euronext as a valued partner in developing this market. NYSE Euronext’s technical and operational expertise in various markets such as the capital and derivatives markets, within multiple localities in Europe and USA is of indispensable value to us.”

“We greatly appreciate and thank the Tokyo Stock Exchange for choosing NYSE Euronext Advanced Trading Solutions, said Duncan Niederauer, CEO, NYSE Euronext. “This agreement builds on our alliance and partnership with the TSE, and we believe the TSE can make good use of our knowledge, leadership and technology advantage in derivatives trading. Together, we will develop and introduce a superior platform that serves the interests of customers, addresses the demands for speed and capacity, and ensure that Tdex+ proves beneficial to the Japanese investor and financial marketplace.”

Separately, the Tokyo Stock Exchange Group, Inc. has put together a group to examine the creation of a carbon market in Japan.

The TSE Group notes that trading in carbon emissions rights is ongoing in Japan and other countries, and is expected to expand further in the future. “Under these circumstances, the TSE Group will strive to make as great a contribution to these efforts as possible from the perspective of a securities exchange, and will accordingly set up the TSE Carbon Market Study Group,” it says.

Through the study group, the TSE Group aims to gather practical advice from experts and other concerned parties on the creation of a carbon market. Starting in late May, the study group will generally be held once a month. By the end of 2008, it will look into the details regarding the framework design of the exchange.