Financial Insights Releases Global Stock Exchange Update; New York Stock Exchange is Now the...

FRAMINGHAM, Mass. -- Leading independent research and advisory firm, Financial Insights, an IDC company, today announced the release of a new report that examines the history and the consolidation trends among global stock exchanges. The study, Shall We Dance?: Global Stock Exchange Update, looks at the consolidation drivers and the relation to current market environments. The report reviews the rationale and challenges of further consolidation among the leading global stock exchanges.

The report discusses the recent failures of Deutsche Borse, Euronext, Maquarie Bank, and Nasdaq to achieve a merger with the London Stock Exchange (LSE). Financial Insights believes that New York Stock Exchange (NYSE) is now well positioned to accomplish what others have not, even in the face of further challenges from Nasdaq. Financial limitations of the players, regulatory issues, and cultural biases will each play a role in how this dance unfolds.

"Consolidation in the United States and Europe will continue to be a fact of life over the next 5-10 years. As the largest exchanges become even larger through mergers, look for the smaller national and regional exchanges to find ways to remain relevant. This will occur either by partnering/merging with the larger exchanges or by trying to develop technology that will give them an edge in wrestling away small pieces of the pie," said Randy Grossman, research manager, Capital Markets at Financial Insights.

The research further analyzes the potential for consolidation of national exchanges in Asia. Financial Insights predicts very limited consolidation, however partnerships and strategic alliances will continue. In addition, the Tokyo Stock Exchange will be investing heavily in its infrastructure to prevent a recurrence of its recent technology meltdowns