NYSE Group, Inc. and Tokyo Stock Exchange, Inc. (TSE) have formed an alliance with a deal signed on Wednesday.

NYSE Chief Executive Officer John A. Thain and TSE President and Chief Executive Officer Taizo Nishimuro signed a letter of intent between the world's two financial market leaders.

The deal aims to jointly develop and explore new opportunities in trading systems and technology, investor and issuer services, investment products and governance and regulation.

The agreement, which is non-exclusive, also sets the stage for a potential capital alliance between NYSE Group and the TSE.

"We welcome this opportunity to work more closely on areas of mutual interest with Mr. Nishimuro and his colleagues at the Tokyo Stock Exchange, the world's second largest equity market," Thain said.

"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," he added.

Nishimuro said "Tokyo Stock Exchange is pleased that both exchanges are proceeding to the next level of cooperation. I strongly believe that this agreement will be a good starting point for a much stronger tie-up with the NYSE and will contribute to the benefit of various market participants of our respective markets."