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Global exchange consolidation

A quick update on the ongoing trend towards financial exchange consolidation worldwide.

We've talked a lot about exchange mergers and proposed buyout deals in the past; at times it seemed as though we might need one of those keiretsu-style entity-relationship diagrams to keep all the alliances and takeover approaches straight.

NYSE, Euronext, LSE, Nasdaq, Tokyo Stock Exchange, CME, CBOT, ICE, and NYMEX. These are just some of the larger firms that got this ball rolling, and we don't know when or where it will stop. All we know is that we probably won't reach the endpoint of this trend until the exchanges decide they've grown weary of their new, "go global or go home", mantra.

So in the meantime, we update this little web of consolidation with the latest news of a deal between the London Stock Exchange (LSE) and Borsa Italiana.

Nasdaq is not happy about the deal, as it had sought to acquire the LSE for itself, a strategy that seems ever more unlikely as time goes by.

Hell, even NYSE Euronext tried to get in on the action, "by offering a deal valued at €1.8bn to €2.0bn", which was rejected by Borsa Italiana. The Borsa people have been more inclined to favor a deal from LSE, which offers them notable representation among the board of a combined entity.

And just when you thought it was safe to go back in the water, the FT looks to the possibility of increased consolidation among Asian exchanges.

Stay tuned.

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