Woman Wearing Bottomless

Scholarships molten ROE

The exchange consolidation has accelerated sharply with the almost simultaneous announcement of the marriage between the London Stock Exchange (LSE) and the Toronto Stock Exchange (TMX Group) and the engagement between NYSE Euronext and the Deutsche Börse.

This last move would be the most formidable, with a new entity that would give a majority in the Frankfurt stock exchange and which would mark, no doubt, a further marginalization of the Paris.

Such approximation to see the day must overcome a number of obstacles including the acceptance by the authorities German American leadership and the Brussels agreement on the very strong position in Europe resulting from the combination of Euronext and Deutsche Börse. Obtaining various agreements require far less a year.

integration of Euronext and Deutsche Börse will not be easy either as their business model against. NYSE-Euronext only includes cash trading platform, derivatives (LIFFE, London). The model "silo" of Deutsche Börse, for its part, very different. It integrates the entire chain of trading orders to their outcome: the award-
cash: Deutsche Börse
-Exchange Derivatives: EUREX
-clearing: Eurex Clearing-
the central depository Clearstream
-system settlement: Clearstream

The main driver of this consolidation is to be sought in the derivatives markets , the most profitable activity scholarships, who knows the greatest growth. The OTC derivatives market reform which is underway, will also result in a return of part of the OTC market, OTC, most of the derivatives business today, to organized markets. It a considerable challenge for scholarships than winning this new business.

Thanks to this consolidation, EUREX, the No. 2 global derivatives markets "organized", would be able to acquire a dominant position entirely in Europe, Euronext LIFFE, and a strong position in the U.S. with the NYSE. It is a major challenge for the world No. 1, CME, Chicago, which would be hardest compete at home and deprived of its opportunities for expansion in Europe. So the CME could lay his heart on his neighbor, the other major derivatives market in Chicago, the CBOE.

Asia remains away from this consolidation frenzy, surfing on a fast-growing business. The consolidation of stock exchanges in Asia, outside of the merger between Singapore and Sydney, is not truly committed.