Global Stock Exchanges Are Headed for Major Consolidation

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Johnny Oxygen's picture
Johnny Oxygen
Status: Diamond Member (Offline)
Joined: Sep 9 2009
Posts: 1443
Global Stock Exchanges Are Headed for Major Consolidation

http://www.cnbc.com/id/41491498

Germany's Deutsche Boerse is in advanced talks to buy NYSE Euronext, and the London Stock Exchange has agreed to buy Canadian stock market operator TMX, as exchanges globally look for ways to boost their markets and cut costs.

..."I think these consolidations are the wave of the future—with aspects we haven't even seen yet—once the derivatives markets are required to be more like exchanges," former SEC Chairman Harvey Pitt told CNBC. "Securities regulators should welcome these consolidations, but competition regulators may be concerned."

 

I don't know about anyone else but I read this as a way of trying to dilute the derivatives market by smearing the debt around a little while longer.

SteveW's picture
SteveW
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 490
Re: Global Stock Exchanges Are Headed for Major ...

The LSE/TMX deal is being reported here as a merger, but since the LSE has a capitalization about 20% above TMX their shareholders will be the majority owners. The combined markets will trade most of the world's resource mining stocks.

I though most derivatives (financial anyway) were traded OTC as closed contracts whose details were not publically available, other than collectively from bank reporting.

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