It bridges time. The money we spend today could have been earned from past accomplishments or could be borrowed from future ones. Money is also Memory for a country and its people. Money, after all, can be a piece of art in everyone’s pocket. Far from being “barren”, our banknotes are a celebration of the UK’s heritage, a salute to its culture, a testament to the great achievements of its most notable individuals. In short, money has not just economic value; it has cultural value. By depicting characters on our banknotes, we celebrate those who have advanced British thought, spurred innovation, shown exceptional leadership, shaped this diverse society and forged our common values. The great statesman Sir Winston Churchill will feature on the next £ note, unveiled on 2nd June, and issued in September, replacing the prison reformer Elizabeth Fry. The renowned author Jane Austen will feature on the £ note, which will be issued in 2017, replacing the ground-breaking scientist Darwin. 1  Hicks, J R (1967), Critical Essays in Monetary Theory. 2  “I am what I am” or “Stupid is as Stupid Does”. 3  A moniker used by Kocherlakota. See Kocherlakota, N (1998), “Money is Memory”, Journal of Economic Theory, 81 (2). 4  Book I, Chapter 4 “On the Origin and Use of Money” of Smith, A (1776), An Inquiry into the Nature and Causes of the Wealth of Nations. 5  Kocherlakota (Ibid.)
Equity and derivatives exchanges are consolidating globally in the bid to establish greater market share and to expand product offerings. The New York Stock Exchange-EURONEXT cross-Atlantic merger to create the first multi-time-zone exchange, and the recently announced merger between the Chicago Board of Trade and the Chicago Mercantile Exchange could lead to more centralized liquidity pool for derivatives trading in the US and Europe. Asian exchanges can do more - TSE can take greater leading role The consolidation trend has yet to reach Asia and Asian exchanges may face the risk of marginalisation. In order to remain relevant, the Asian exchanges may need to explore ways to deepen collaboration and product differentiation in the face of strong competition. In Asia, the Tokyo Stock Exchange is the largest stock exchange by market capitalization. Since its establishment in 1878, it has grown to be the 2nd largest bourse globally, with a market capitalization of its listed companies exceeding $ trillion, second only to the New York Stock Exchange. It also registers high average daily trading volume for domestic equities of about $ billion for 2005. I understand that the Tokyo Stock Exchange is currently in talks with major exchanges about alliances and I am heartened to hear its efforts to work more closely with the Asian exchanges. For example, the Tokyo Stock Exchange and the Singapore Exchange have been discussing about such strategic cooperation which would benefit both markets and their investors, including the possible trading linkage, and I urge both parties to work together more closely.