Skip to main content

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.

Popular posts from this blog

Finance Trends 2019 Mid-Year Markets Review

Email subscribers of the Finance Trends Newsletter receive the first look at new articles and market updates, such as the following piece, sent out to our email list on Sunday (6/14).   Hello and welcome, everyone! If you received our last email notice over the July 4th holiday, you'll know that this weekend's newsletter will serve as a mid-year market update and a follow-up to issue #29, " How to Reinvest in a Rising Market ".   Ladies and gentlemen, without further ado, let's start the show...  Finance Trends Newsletter: Our Mid-Year Market Review When we last spoke, back in February, the U.S. stock market was rallying off its December-January lows. As the S&P 500 and Nasdaq reclaimed their 200 day moving averages in February and March, it became increasingly apparent that a lot of retail investors (and perhaps some institutional investors) were left under-invested while watching this recovery move from the sidelines.  The U.S. stock ...

Jesse Livermore: How to Trade in Stocks (1940 Ed. E-book)

If you've been around markets for any length of time, you've probably heard of 20th century supertrader, Jesse Livermore . Today we're highlighting his rare 1940 work, How to Trade in Stocks (ebook, pdf). But first, a brief overview of Livermore's life and trading career (bio from Jesse Livermore's Wikipedia entry). "During his lifetime, Livermore gained and lost several multi-million dollar fortunes. Most notably, he was worth $3 million and $100 million after the 1907 and 1929 market crashes, respectively. He subsequently lost both fortunes. Apart from his success as a securities speculator, Livermore left traders a working philosophy for trading securities that emphasizes increasing the size of one's position as it goes in the right direction and cutting losses quickly. Ironically, Livermore sometimes did not follow his rules strictly. He claimed that lack of adherence to his own rules was the main reason for his losses after making his 1907 and...

How to "Pull the Trigger" on Your Trading Ideas

In our last post, I quoted hedge fund manager, Jim Leitner on the importance of following up on your investment ideas.  Today I'd like to follow up and share some thoughts on how you can learn to consistently "pull the trigger" on your best trading setups and investing ideas. In order to help you do that, we'll take from the best and offer up key insights from interviews with top traders and trading psychologists like Alan Farley, Brett Steenbarger, and Doug Hirschhorn .  Now before we get to their key insights on overcoming trading anxiety and pulling the trigger on your trading ideas, let's remember what Jim Leitner said in his interview: "Learn to love to listen to people and when you hear something interesting, follow up on it. Don't just think, "Well that's an interesting idea" only to find out a year later that the company you could've bought shares in is now up 500-fold. You never want to say woulda, coulda, shoulda...