The Tokyo Stock Exchange is in talks with the London Stock Exchange (LSE) to set up an operational alliance which could see the two market operators share trading systems.
The two exchanges are also thought to be discussing the possibility of cross-listing exchange-traded funds.
But a spokesperson for the TSE, which is the largest bourse in Asia, has stated that a capital tie-up was not on the agenda.
The TSE has also recently held discussions with the New York Stock Exchange about a capital and operational tie-up. The talks come as the US exchange focuses on tapping into the Asia market amid intensifying competition among exchanges.
The TSE said it also would "look into such alliances with other exchanges abroad".
Earlier this month, US market operator Nasdaq signed co-operative agreements with both the Korea Exchange and the Tokyo-based Jasdaq exchange.