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Made In Germany: Nyse Stock Trades? (Canada's Done It As Well)

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Talk about outsourcing.

The parent company of the New York Stock Exchange revealed Wednesday that it is in advanced talks to be purchased by the owner of the German stock exchange -- meaning that the citadel of American capitalism soon could be foreign-owned.

Following intensifying market rumors, as well as halting trading in its own stock, NYSE Euronext said it may sell itself to Deutsche Boerse. After trading in shares of NYSE Euronext resumed, the stock -- already up on the rumors -- climbed further. With about two hours left in the trading day, the stock was up $5.30, or 16%, to $38.71.

The deal being negotiated calls for Deutsche Boerse to own approximately 60% of the company, the first time in its history that the iconic NYSE would be controlled by a foreign entity. Duncan Niederauer, NYSE Euronext chief executive, would be CEO of the combined company.

In some ways, the potential deal is the next step in the evolution of stock exchanges from nonprofit entities owned by their members to fast-moving companies with publicly traded stocks. The NYSE and many traditional stock exchanges switched to public ownership over the last decade, saying the rapid pace of technology and other forces required them to be more nimble and entrepreneurial.

Amid the continuing threat to traditional trading floors from often faster and cheaper electronic trading systems, exchanges have been merging among themselves and, in some cases, branching into alternative lines of business. The NYSE’s potential deal came only a few hours after London Stock Exchange Group announced a similar deal with TMX Group of Canada.

Still, the idea of the bastion of U.S. stock trading being foreign-owned is a bit jarring.

No word yet on whether stock trades will have “Made in Germany” stamped on them.

Very interesting. It is also very interesting to note that 2/3'rds of Germany's physical gold is held by the NY Fed, never to return.

Strange world.

Canada TMX story: Link

LSE hails TMX deal but Canadians remain wary

Shares in the London Stock Exchange soared yesterday after it confirmed plans to merge with TMX Group, which owns the Toronto stock exchange.

The LSE finished up 28p at 920p, despite warnings from Canadian politicians that they would examine the deal to see if the Investment in Canada Act applies. The law was used to scupper the miner Anglo American's hostile bid for the fertiliser maker PotashCorp last year.

One of the key selling points of the tie-up is that would provide the LSE with a major derivatives platform, the lack of which is seen as one of the biggest weaknesses in its current portfolio. The LSE chairman, Chris Gibson-Smith, said the proposed merger was about creating "global competitiveness" and added: "This is a good deal for London and a good deal for Canada."

Mr Gibson-Smith accepted that the perception of exchanges as national assets still persisted. He said: "We are quite clear that we have to satisfy Canadian political opinion about the merits of this deal and we are confident we can do that."

While the deal is being billed as a merger of equals, shareholders in the LSE will hold 55 per cent of the combined group. It will also continue to be a London-registered company regulated by the Financial Services Authority, with LSE chief executive Xavier Rolet taking the helm. Canada will provide the chairman.

The LSE will become the biggest exchange for natural resources companies, a major selling point of the deal given the current boom in commodities driven by China and India.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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