James Rundle: Mergers and Inquisitions
Deutsche Börse CEO Reto Francioni earlier this year declared February 1, 2012, “a black day for Europe.” While disappointing for those involved, the European Commission’s veto of the German bourse’s proposed merger with NYSE Euronext is far from the worst days the continent has known. And by that point, the deal had little chance of success, having been subjected to forensic levels of regulatory scrutiny, and consistent lobbying from the Chicago Mercantile Exchange. Either way, it was the highest-profile in a wave of recent failed mergers that has also counted the Singapore Exchange and the London Stock Exchange (LSE) among its victims.
Then, it seemed inevitable that the era of super-bourse mergers was over. At the time, that seemed reasonable. But recently, the merger train seems to have gathered steam again.
House of the Rising Sun
Most notable of the renewed exchange merger trend is the creation of a Japanese superpower, combining the Osaka Securities Exchange and the Tokyo Stock Exchange into one of the largest exchange businesses in the world—tentatively labeled the Japan Exchange Group—with cash trading handled in Tokyo and derivatives in Osaka. Elsewhere, Oslo Børs acquired local rival Burgundy in a bid to chip away at Nasdaq OMX’s dominance in the Nordic region. This unstated goal is in line with Burgundy’s original intent, having been set up by banks and brokers to challenge Nasdaq in the first place. In London, the failure of Plus Markets Group led to a fire sale of its assets—the technology solutions arm was bought by former Chi-X COO Hirander Misra, while the exchange business was snapped up by Icap, leaving investors owed money to pick over the remains. Maple completed its acquisition of the TMX Group, beating the LSE, while on a smaller scale, CME Group is set to buy the Kansas City Board of Trade.
Technology provision is still a heavy-duty game for exchanges, accounting for an increasingly large part of their revenue.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Waters Wavelength Podcast: Broadridge’s Joseph Lo on GPTs
Joseph Lo, head of enterprise platforms at Broadridge, joins the podcast to discuss AI tools.
Man Group CTO eyes ‘significant impact’ for genAI across the fund
Man Group’s Gary Collier discussed the potential merits of and use cases for generative AI across the business at an event in London hosted by Bloomberg.
BNY Mellon deploys Nvidia DGX SuperPOD, identifies hundreds of AI use cases
BNY Mellon says it is the first bank to deploy Nvidia’s AI datacenter infrastructure, as it joins an increasing number of Wall Street firms that are embracing AI technologies.
This Week: Linedata acquires DreamQuark, Tradeweb, Rimes, Genesis, and more
A summary of some of the latest financial technology news.
Systematic tools gain favor in fixed income
Automation is enabling systematic strategies in fixed income that were previously reserved for equities trading. The tech gap between the two may be closing, but differences remain.
Euronext microwave link aims to cut HFT advantage in Europe
Exchange plans to level playing field between prop firms and banks in cash equities with cutting edge tech.
Why recent failures are a catalyst for DLT’s success
Deutsche Bank’s Mathew Kathayanat and Jie Yi Lee argue that DLT's high-profile failures don't mean the technology is dead. Now that the hype has died down, the path is cleared for more measured decisions about DLT’s applications.
‘Very careful thought’: T+1 will introduce costs, complexities for ETF traders
When the US moves to T+1 at the end of May 2024, firms trading ETFs will need to automate their workflows as much as possible to avoid "settlement misalignment" and additional costs.
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Deutsche Börse democratizes data with Marketplace offering
- Sell-Side Technology Awards 2024: All the winners