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European Markets and Trading. By: Jesse Scott. Major European Markets. London Stock Exchange Euronext Deutsche Boerse OMX Nordic Exchange Borsa Italiana SIX Swiss Exchange BME Spanish Exchange. London Stock Exchange. Market Capitalization: 2.79 T (USD)
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European Markets and Trading By: Jesse Scott
Major European Markets • London Stock Exchange • Euronext • Deutsche Boerse • OMX Nordic Exchange • BorsaItaliana • SIX Swiss Exchange • BME Spanish Exchange
London Stock Exchange • Market Capitalization: 2.79 T (USD) • Number of Companies Listed: 2,792 • Domestic: 2,179 • Foreign: 613 • Ran by London Stock Exchange Group • Founded in 1801 • 2007 Merge with BorsaItaliana; purposed merger with Toronto Exchange
London Stock Exchange • Key Indexes: • FTSE 100 • Hours of Operation: • 8am – 4:30pm • Operates EDX London, Derivatives Market • Energy and Natural Resources
Euronext • Market Capitalization: 2.87 T (USD) • Number of Companies Listed: 1,160 • Domestic : 990 • Foreign: 170 • Ran by: NYSE Group • Operates Primarily in France, Belgium, Netherlands, and Portugal
Euronext • Key Indexes: • Euronext 100 • Hours of Operation: • 9am – 5:30pm • EuronextLiffe • Derivatives Market • Second Largest in Europe
Deutsche Boerse • Market Capitalization: 1.29 T (USD) • Number of Companies Listed: 783 • Domestic: 704 • Foreign: 79 • Ran by: Deutsche Boerse Group • Largest German Stock Exchange - Frankfurt
Deutsche Boerse • Key Indexes: • DAX • Hours of Operation: • 9am – 5:30pm • Eurex • Derivatives Market • Joint Operations with SIX Swiss • Largest European Derivatives Market
OMX Nordic Exchange • Market Capitalization: 817 B (USD) • Number of Companies Listed: 797 • Domestic: 773 • Foreign: 24 • Ran by: Nasdaq Group • Includes Markets in: Finland, Sweden, Norway, Denmark, Iceland
OMX Nordic Exchange • Key Indexes: • Nordic 40 • Derivatives Market: • Nordic Derivatives Market • Hours of Operation: • 9am – 4:30pm
BorsaItaliana • Market Capitalization: 655 B (USD) • Number of Companies Listed: 296 • Domestic: 291 • Foreign: 5 • Ran by: London Stock Exchange Group • Based in Milan
BorsaItaliana • Key Indexes: • FTSE/MIB • Runs Italy’s Derivatives and Fixed Income Markets • Hours of Operation: • 9am – 5:30pm
Swiss Exchange • Market Capitalization: 1.05 T (USD) • Number of Companies Listed: 339 • Domestic: 275 • Foreign: 64 • Ran by: SIX Group • Based in Zurich
Swiss Exchange • Key Indexes: • Swiss Market Index (SMI) • Derivatives: • Eurex • Joint Operations with Deutsche Boerse • Hours of Operation: • 9am – 4:30pm
BME Spanish Exchange • Market Capitalization: • Number of Companies Listed: 3,472 • Domestic : 3,435 • Foreign: 37 • Ran by: BME Group • Operates several markets • Madrid, Barcelona, Biboa, and Valencia Stock Exchanges
BME Spanish Exchange • Key Indexes: • Ibex 35 • Derivatives: • MEFF • Focus in Energy and Financial Derivatives • Hours of Operation: • 9am – 4:30pm
Current Events • Deutsche Boerse proposes merger with NYSE Euronext • Deutsche Boerse will purchase $9.68B worth of stock giving the company a 60% share • Proposed merger said to create $405M in synergies • Will become worlds largest exchange group • Possible regulatory issues • Eurex and Liffe would combine to have 90% European market share in derivatives
Current Events • Counter-offer by Nasdaq OMX and ICE to by NYSE Euronext • $11.3B offer, 16% higher than Deutsche Boerse • Will create $740M in synergies • Nasdaq OMX acquires NYSE Euronext listings, equities, and options. • ICE acquires NYSE Liffe derivatives markets, becomes 4th largest company in terms of global trading volume
Other M&A’s in the Equity Markets • 2007- NYSE purchases Euronext for $10.2B • London Stock Exchange to purchase TMX (Toronto) for $3.2B • BM&FBovespa (Brazil, 4th largest financial exchange operator) looking to make a move • Hong Kong Exchange • Australia ASX and Singapore Exchange $7.9 B deal maybe?
Why the Consolidation? • Battle On-line Rivals • Losing Market Share to Electronic Trading • Increase Product Offerings • Cost Savings • Escape Mature Business for Growth Opportunities