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The Mega STock Exchange - SGX International, linked to all the world's stock exchange, 24 hours!
Hulumas ( Date: 10-Feb-2011 11:02) Posted:
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http://finance.fortune.cnn.com/2011/02/09/why-exchange-mergers-are-bad-news/
Why the NYSE deal is bad news
Posted by Colin Barr
February 9, 2011 2:12 pm
Deal talk has exchange stocks grooving. But more mergers spell disaster for markets already tilted dangerously in flavour of big companies and fast traders.
10-02-2011 20:00:11
RPT-DEALTALK-Nasdaq, CBOE top targets in exchange merger mania
(Repeats Feb. 9 story for wider readership)
(For more Reuters DEALTALKs, double-click [DEALTALK/] )
* Nasdaq 'odd man out' after LSE-TMX, NYSE-D.Bourse
* Nasdaq could target Asia, BATS-Chi-X, LSE-TMX
* CBOE possible target, but shareholders want too much
* CME potential buyer, but has denied eyeing big deals
By Paritosh Bansal and Victoria Howley
NEW YORK/LONDON, Feb 9 (Reuters) - Nasdaq OMX Group Inc and CBOE Holdings Inc
The deals sent shares of exchanges up across the board as investors bet more is to come. Pressure is mounting on global bourses to seek partnerships to counter the threat from bigger rivals and alternative trading platforms, and to cut costs, analysts said. " Nasdaq, I think, is probably the odd man out right now," said Larry Tabb, founder of research and advisory firm Tabb Group. " You would expect Nasdaq to make the next move."
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Breakingviews-LSE on better side of deal [ID:nLDE7180P0]
Breakingviews on NYSE/Deutsche Boerse [ID:nN09182228]
Reuters Insider: Larry Tabb http://link.reuters.com/syt87r
Reuters Insider: Drive to diversify [ID:nRTV187395]
Take a Look: [ID:nLDE7180MZ]
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Nasdaq, given its $5.1 billion market cap and focus on the intensely competitive, low-margin equities business, was more likely to be an acquirer than a target, Tabb said. Nasdaq might also wait to buy the survivor of two ongoing deals: the London-Toronto deal and a possible merger between Bats Europe and Chi-X Europe, Tabb said. Still, the LSE-TMX combination could be ambitious for Nasdaq given that it would have a larger market value, and Nasdaq's shares rallied 6.7 percent on Wednesday, indicating that some investors also view it as a possible target. The latest deals mark a return of the long-term consolidation trend among exchanges, which was interrupted by the financial crisis.
Singapore Exchange
In the last 10 years, deal activity between exchanges has totaled $94 billion from more than 600 deals, according to Thomson Reuters data. " On the one hand they are defensive, to contain costs, and on the other hand, they are on the attack," said Thomas Caldwell, CEO of Caldwell Securities Ltd in Toronto, which owns shares in most of the major global securities markets. " Exchanges have to act to respond to alternative trading systems, and they also have to act to bring their costs down.
" Shares of CBOE Holdings Inc
ICE, which bought London-based European Climate Exchange last year for nearly $600 million, sees " a lot of opportunity in the changes that are going on," Chief Financial Officer Scott Hill said on Wednesday. But he added it is " proceeding cautiously on the M& A side, because what we don't want to do is we don't want to acquire to build scale." Nasdaq, NYSE and a combined LSE and TMX would also look to Asia, where all three groups would have gaps in their footprints, bankers said.
COMPLEX DEALS
Exchanges deals, however, are notoriously difficult to pull off. One major challenge is politics as exchanges can tend to be seen as national symbols, making countries skittish about giving control to a foreign entity. There is very little chance, for instance, China's Shenzhen and Shanghai Stock Exchanges or the Hong Kong exchange will join the global M& A activity despite their rapid growth.
Vaunted expectations on price and high valuations could also be roadblocks for deals. " As it relates to CBOE, there is a huge differential in terms of what their shareholders think they are worth and where the market's valuing them," a financial institutions investment banker said. " No one is going to bridge that gap."
The shares of Brazil's BM& F Bovespa
CBOE and Nasdaq are among the juiciest targets, said Richard Repetto, an exchange analyst for Sandler O'Neill. Spokesmen for both exchange declined to comment. CBOE is attractive for its large market share in the fast-growing market for stock options as well as its profitable and exclusive S& P 500 index options, and Nasdaq for its global technology business as well as its equity and options trading, Repetto said. While consolidation makes the most sense in the ultra-competitive world of securities trading, some futures markets could also take the opportunity to acquire competitors.
" There is an opportunity for everybody," he said. (Additional reporting by Ann Saphir in CHICAGO, with Saeed
Azhar in SINGAPORE, Phil Wahba in NEW YORK, Kelvin Soh in HONG KONG, Rachel Armstrong in SINGAPORE, Soo Aipeng in SHANGHAI and Tim Kelly in TOKYO, editing by Matthew Lewis)
((paritosh.bansal@thomsonreuters.com + 1 646 223 6113
Reuters Messaging: paritosh.bansal.reuters.com@reuters.net))
teeth53 thot - Hong Kong reply to merger players and has a near-monopoly position backup by China.
10-02-2011 20:03:07
BREAKINGVIEWS-HK need not join exchange mega-mergers
The author is a Reuters Breakingviews columnist. The opinions expressed are his own -- By John Foley
HONG KONG, Feb 10 (Reuters Breakingviews) - As the world's major bourses bulk up to create global trading platforms, Hong Kong Exchanges and Clearing stands alone. It is the world's biggest exchange operator by market capitalisation, and its own shares trade at 38 times forward earnings, twice the global average.
It could probably have its pick of targets, when comes to mega-mergers, Hong Kong can afford to bide its time.
Not that Hong Kong can ignore the competitive threat. Mergers between Deutsche Boerse
Large mining IPOs, and even luxury goods companies like Prada, have started gravitating to where their future customers are: China. If acquisitions were wanted, Hong Kong has what seems like the ideal currency, a sky-high valuation, as foreign investors can't directly buy into mainland China stocks and has a near-monopoly position.
A slew of innovations like yuan-denominated IPOs and bonds promise to bring more volume into the city. But the share price is punchy, by any standards. Size also creates a snag. Recent exchange deals have been structured as mergers of equals. Politicians and managers don't like to see their local exchange come out as the junior partner.
Even non-flag carrying exchanges might gulp at the terms: Hong Kong's equity is worth five times that of NASDAQ, for example. Still, while other exchanges are tied up in knots, Hong Kong can focus on what it does best: cosying up to the Chinese mainland.
It also needs to spruce up its technology which lags behind same-sized rivals while pushing into derivatives and modernising its market practices. While other exchanges talk about 24-hour trading, Hong Kong still closes for two hours over lunch. The crop of mega-mergers might spur faster change.
Local tycoon Li Ka-shing already gave another wake-up call when he chose Singapore to list his Hutchison Whampoa shipping business last month.
One day China will open its capital markets. For time being, however, Hong Kong must focus on being top-notch. It can do that without in merger frenzy.
D, D, D, and Different thinking, different cultures, difficult to merge going by historical difficulties.
Next . . . JSE & KLSE ? Stock Exchange merger is on trend commencing 2011 !
teeth53 ( Date: 09-Feb-2011 23:21) Posted:
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10-02-2011 09:01:55
Singapore Hot Stocks-SGX up on improved prospects for ASX bid
SINGAPORE, Feb 10 (Reuters) - Shares of Singapore Exchange, Asia's second-largest listed bourse, rose as much as 1.3 percent on Thursday due to improved prospects for its planned acquisition of Australia's ASX
At 0104 GMT, Singapore Exchange was 1.2 percent higher at S$8.44 with 437,000 shares traded. Deutsche Boerse
The news came only hours after the London Stock Exchange said it had agreed to buy Canadian market operator TMX , marking a shake-up for an industry under intense cost pressure from upstart electronic rivals. " Having seen so many mergers in the global market recently, Australia may better accept the prospect of being a part of a larger group and it's paved the way for Australians to accept the reality of today's world," said Magdalene Choong, an analyst at Phillip Securities.
ASX shares jumped more than 4 percent in Australian trading on Thursday. [ID:nSYU010798]
(Reporting by Charmian Kok)
((charmian.kok@thomsonreuters.com)(+65 6403 5666)(Reuters
[Feb 9, 2011] BERLIN (AP) — Stock market operator NYSE Euronext said Wednesday that it is in " advanced discussions" about a possible merger with Germany's Deutsche Boerse ...
Comes 1 March 2011...non-stop trading. Trade till you drop. Special delivery everyday. Lol
09-02-2011 21:53:27
London bid for TMX exchange reopens benefit debate
* Government must mull if offer benefits Canada
* Provincial regulators will also have a say
* Canada blocked BHP's bid for Potash Corp last year
By Pav Jordan and David Ljunggren
The deal has parallels to the offer from the Singapore Exchange
TORONTO/OTTAWA, Feb 9 (Reuters) - A takeover of Canada's TMX
The proposed deal would create the world's fourth-largest trading center, with a market value of some $6.9 billion. But debate has already started on the benefits to shareholders and to Canada, which last year vetoed BHP Billiton's
The LSE announced the deal overnight and the Canadian government has yet to say what it will do. But political rhetoric has already begun. " The benefit to Canada's economy and sovereignty are not immediately clear," said Karl Belanger, a spokesman for the left-leaning NDP party.
The opposition Liberal Party said it was withholding judgment until it saw an actual investment proposal. " And once there is one, we expect the government to review this under the ICA (Investment Canada Act) to determine whether it's in the best interests of Canadians," said Liberal Party spokeswoman Leslie Church. TMX, which boasts a sizable oil and gas component and a stable of some of the world's largest gold companies, also owns a derivatives exchange headquartered in Montreal, the financial center of the French-speaking province of Quebec, giving Quebec regulators a major say in a deal.
Some of the largest mining companies in the world are listed on the LSE. " It's interesting. I see a synergy there, but if you read carefully, there is an anti-takeover clause within the TMX Group's bylaw, so the government has to approve this," said Ma. The newly created group would also be the second-largest in terms of total listed market capitalization. [ID:nLDE7180IA]
($1=0.62 British pounds)
(Additional reporting by Solarina Ho in Toronto editing by Janet Guttsman)
((pav.jordan@thomsonreuters.com 416-941-8199: Reuters
Messaging: cameron.french.reuters.com@reuters.net))
Keywords: TMX/CANADA
The company, which will span 20 trading markets and platforms across Europe and North America, will be well-placed to tap into the booming commodities sector at a time of rocketing prices for commodities like copper and crude oil.
The enlarged group, which will be jointly headquartered in London and Toronto, will have a combined market capitalisation of almost $7.0 billion dollars (5.1 billion euros).
The group, provisionally called LSEG-TMX, will be the world's largest exchange in terms of the number of companies traded, with a total of more than 6,700 listings.
And it will also become the number one venue for international listings from emerging and growth markets, according to the statement.
The deal is expected to be completed in the second half of this year, subject to shareholder and regulatory approvals.
Where Deutsche Boerse has failed three times to buy the LSE -- firstly in 1998, then in 2000 and also in 2005 -- as it sought to keep ahead of arch-rival Euronext, which operates the Paris, Amsterdam, Brussels and Lisbon exchanges.
London, Toronto stock exchanges unveil merger
AFP - 48 minutes agoLONDON (AFP) - - The London and Toronto stock exchanges announced a landmark merger on Wednesday to create a one of the world's biggest trading platforms that will dominate raw materials and energy. Full Story »