14 December 2017
Gary Wright

Gary Wright

Gary Wright - BISS Research

277Posts 1,053,107Views 369Comments

NYSE Euronext deal with Deutsche Borse

09 February 2011  |  2950 views  |  0

Nyse Euronext and Deutsche Börse are in merger talks, fresh on the news that the LSE and TMX are in advanced stages of a merger. After a few years of inactivity it looks like the Exchange consolidation has found new legs. Is this good or bad news for the investors?

Certainly the creation of huge international exchanges should have a beneficial impact on costs and efficiency, providing the Exchanges can integrate their technology, operations and management. We should also be seeing an impact of economy of scale, making the investment landscape and portfolios broader and deeper, with some risk reduction.

What about the MTFs? Surely as the Exchanges regain their position, which have been briefly threatened, introduce a greater depth of service to their business, the MTFs will lose their attraction. After all, the major Exchanges can now rightly say that they are operating as fast and as technology proficient as any MTF. So what do they now offer or have we seen the begining of the end of the MTF challenge?

Whatever the future holds, it now looks like a market dominated by two large International Stock Exchanges. Which has the better deal?

The LSE and TMX Group looks more imaginative and has more growth potential with less overlap of business, operations and technology. Any merger is more likely to be sucessful with least cost and fuss.

However, the Nyse Euronext and Deutsche Börse is a bit more challenging with many difficult hurdles to overcome. Assuming these challenges are met the potential is huge. But this deal looks less exciting and although we are short of details at this stage, it's doubtful it will acheive the potential return and impact the market, as the LSE and TMX Group deal.

Exciting times though!    

Comments: (0)

Comment on this story (membership required)

Latest posts from Gary

Wealth Management - Turkeys Vote for Christmas

27 September 2013  |  3739 views  |  0 comments | recomends Recommends 0

The future of systems in financial services

29 July 2013  |  3439 views  |  0 comments | recomends Recommends 0

Social media and trust in financial markets

25 June 2013  |  6015 views  |  0 comments | recomends Recommends 0

Technology changing the markets

25 June 2013  |  3335 views  |  0 comments | recomends Recommends 0

Technology begins to change

14 June 2013  |  2859 views  |  0 comments | recomends Recommends 0

Gary's profile

job title Analyst
location London
member since 2007
Summary profile See full profile »
CEO of B.I.S.S. Research, founder of the BISS Independent Accreditation for all systems and services provided to financial services companies internationally. Guest Lecturer at Reading University and...

Gary's expertise

Member since 2007
277 posts369 comments

Who's commenting on Gary's posts