Exchange Mergers: A Whole Lotta Hype

As a columnist, there are two great perils. The first is that you write about something where it's obvious (to your readers anyway) that you don't know what you are talking about. Since I walk that tightrope everyday, I tend to ignore that particular hazard of the job. Ignorance is bliss, and all that.
The second danger is expressing an opinion that is ultimately proved laughably wrong. Still, it's better to have a wrong opinion than no opinion at all, right? Since I'm not a shockjock and don't write things simply to get a rise out of people, I concern myself more with this aspect of the job.
At the risk of opening myself up to ridicule, I have to say that all these exchange merger talks are pure hot air. My theory is that, at worst, the exchanges are using all this speculation as a form of one-upmanship over their competitors, while at best it's a poorly disguised attempt to bag a desperate seller.
After the New York Stock Exchange-Deutsche Börse and London Stock Exchange-Toronto Stock Exchange mergers, the consensus was (when the news broke) that these two moves would be a prelude to a wave of consolidation across the globe. Yet two months down the line and it's starting to appear that this is all just hype, for varying reasons.
For example, the Singapore Exchange and Australian Securities Exchange talks appear to have fallen apart because the Australian government says the merger would not be in the best interest of the country. Then there was speculation that Nasdaq and the IntercontinentalExchange would partner to acquire NYSE Euronext, but those nascent inquiries/rumors proved unfounded.
Additionally, over drinks and in recent private meetings, I heard rumors that the Tokyo Stock Exchange was looking for a partner after its Arrowhead platform hadn't enticed the volume of foreign high-frequency traders it had hoped to. Many also speculated that the Chicago Mercantile Exchange would get involved in the wheeling and dealing, but so far, no dice.
Let's also not forget that it's not inconceivable that the New York Stock Exchange-Deutsche Börse merger could fall apart at any moment.
My point is this: This year is certain not to be the year of consolidation it was shaping up to be back in February. Therefore, someone please wake me up when something actually happens.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Waters Wavelength Ep. 313: FIS Global’s Jon Hodges
This week, Jon Hodges, head of trading and asset services for Apac at FIS Global, joins the podcast to talk about how firms in Asia-Pacific approach AI and data.
Project Condor: Inside the data exercise expanding Man Group’s universe
Voice of the CTO: The investment management firm is strategically restructuring its data and trading architecture.
BNP Paribas explores GenAI for securities services business
The bank recently released a new web app for its client portal to modernize its tech stack.
Bank of America and AI, exchanges feud with researchers, a potential EU tax on US tech, and more
The Waters Cooler: Broadridge settles repos in real time, Market Structure Partners strikes back at European exchanges, and a scandal unfolds in Boston in this week’s news roundup.
Bloomberg rolls out GenAI-powered Document Insights
The data giant’s newest generative AI tool allows analysts to query documents using a natural-language interface.
Tape bids, algorithmic trading, tariffs fallout and more
The Waters Cooler: Bloomberg integrates events data, SimCorp and TSImagine help out asset managers, and Big xyt makes good on its consolidated tape bid in this week’s news roundup.
DeepSeek success spurs banks to consider do-it-yourself AI
Chinese LLM resets price tag for in-house systems—and could also nudge banks towards open-source models.
Standard Chartered goes from spectator to player in digital asset game
The bank’s digital assets custody offering is underpinned by an open API and modular infrastructure, allowing it to potentially add a secondary back-end system provider.