The deal would create the world's fifth largest listed exchange operator. It will benefit both parties, creating a roughly US$1.9 trillion market that would pose a serious threat to other Asian exchanges in Hong Kong and Tokyo by luring away big fee-paying clients like high-frequency traders and companies seeking to raise capital in a deep, liquid market.
Monday, October 25, 2010
Scale Economies of Stock Exchanges
The first question to ask for any acquisition is "why does this merger create value?" In this case, the Singapore Exchange and Australian Securities Exchange hope to create a more liquid market.