TOKYO, Jan. 5 (Xinhua) -- The Tokyo Stock Exchange Inc. (TSE) and five other stock markets in Japan are considering to merge and reorganize by 2009, the Yomiuri Shimbun newspaper reported Friday.

    The merger is expected to help the bourses improve efficiency of market operations and cope with the reorganization processes of international stock markets, the paper said.

    Several management companies and a self-regulatory firm are expected to be set up under a holding company during the reorganization, according to a plan considered by Japan Securities Dealers Association officials.

    The merger will target the TSE, the largest bourse in Asia, as well as Osaka Securities Exchange Co. (OSE), Nagoya Stock Exchange Inc., Fukuoka Stock Exchange, Sapporo Securities Exchange and Jasdaq Securities Exchange Inc.

    According to the plan, under the holding company, provisionally named Japan Stock Exchange, several market management companies will be founded, of which, one is led by the TSE on spot markets, another by the OSE on futures markets and a third one merged from markets for start-up companies. A fourth company will ensure that listed companies on those three markets meet listing requirements.

    Japan's financial authorities inclined to boost domestic markets through mergers rather than competition. If the markets reach an agreement, the authorities will likely approve the plan, the report said.