Are exchange mergers back?

[jesseps]

Is this the return of the consolidation trend that swept the exchange business a few years ago? Exchange combinations were hugely popular through the middle of the 2000s, creating companies like Nasdaq OMX Group and NYSE Euronext on the premise that trading was becoming busier and more international. Then came the pause, as markets bounced around and uncertainty swept the industry. Now comes news that the Singapore Exchange Ltd. is in talks to combine with ASX Ltd.

 

Canada's TMX Group Inc. has consolidated in Canada through the purchase of the derivatives focused Montreal Exchange and commodity trading platforms, but has remained a domestic play.

 

Could TMX Group look beyond our borders, and should it? Chief executive officer Tom Kloet has been on the job for more than two years, and has completed the integrations of those other purchases. He has the international experience, as well, having run the Singapore Exchange.

 

And there's a case to be made that trying to combine the TMX Group with a trans-oceanic partner that has a big presence in industries such as mining and energy, as ASX does, makes good sense.

 

(Courtesy of The Globe and Mail)

 

If TMX does look to merge with an exchange somewhere, who do you think would be their best fit?

[cjb]

With the S&P, They are already affiliated, and the way the index is calculated is the same. also, many companies are quoted on both exchanges.

[gars du new jersey]

Standard & Poor's is a financial research company, not an exchange...

[cjb]

Ok sorry, I mean I see TMX merge with NYSE more than any other. And I think it could happen within 5 years.