The Wall Street Journal is reporting that the New York Stock Exchange — the citadel of American capitalism for 219 years — was near an agreement to be acquired by Deutsche Börse AG in a deal that would create the world’s largest financial exchange.
If a deal is reached and regulators approve, the WSJ writes that the combined company would trade more stocks and futures than any rival in the world and more options than any U.S. exchange.
The takeover would culminate a decade of tie-ups by exchanges around the world eager to find new sources of growth and catch up with smaller rivals that have been quicker to embrace new kinds of trading, the WSJ writes.
For New York, the move is symbolic of the city’s fading dominance on the world stage as other countries are drawing investors directly to their markets, the WSJ writes.
The move also is a recognition that securities trading today goes on at all hours and in all time zones, making the actual bricks and mortar of Wall Street far less important than before, the WSJ writes.
“New York is going to be important, but it’s not the financial center. Capital markets are everywhere now,” Michael LaBranche, CEO of LaBranche & Co, told the WSJ.
Antitrust experts cautioned that the proposed deal could face tough regulatory scrutiny in Europe and in Washington, the WSJ reports.
- Henry Unger, The Biz Beat
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