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.

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.


  1. I think that it is creating value, at least to the consumer. If they are listing 2700 companies (which I believe they stated was at least the highest number in the region) you will limit the trading costs for consumers if they are located in one place.

  2. Honestly speaking I feel it’s way too tough to handle Stock Market especially for new comers, so that’s why I always believe that we should do what we feel comfortable with. I do Forex trading since that’s far more profitable and easier to do and thanks to giant support in OctaFX broker, I am able to do things easily especially with their low spread of 0.2 pips for all major pairs while there is also great support service that’s always active.