London and Toronto stock exchange to merge?

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    ryankettposted 5 years ago

    Is this a first?

    Apparently the London Stock Exchange and the Toronto Stock Exchange are to become one, with 55% of control given to a London commission and 45% to a Toronto commission.

    Apparently this will make it easier for North Americans to invest in small and medium sized European companies and easier for Europeans to invest in small and medium sized companies floated on Toronto markets.

    It will become the worlds most important market for mining and energy sectors and the new combined exchange will be the fourth most important world market (pushing NASDAQ into fifth).

    Apparently the Hong Kong stock exchange wants a merger too, and apparently the LSE might be moving to acquire the Australian Stock Exchange.

    What does all this mean? Personally I suspect it means nothing other than less employees, thus lower costs, and more money entering the pockets of those at the very top. Investors are unlikely to achieve efficiencies.

    Not that I am going to shed a tear for those working in 'the city'.

    1. Kangaroo_Jase profile image80
      Kangaroo_Jaseposted 5 years ago in reply to this


      Except ASIC would block a move to have major foreign ownership of the Australian Stock Exchange and so would many of our independent federal ministers, so parts of Govt would block it in the upper house.

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        ryankettposted 5 years ago in reply to this

        They may not have any choice if they want to avoid becoming entirely irrelevant, every exchange in the world seems to be seeking a merger in order to consolidate. Your political objections at the moment seem to be at the prospect of a tie with Singapore rather than an objection to the principle of a merger. Business is Singapore is done very differently in Singapore than it is in Australia, it doesn't feel as natural as a merger between Toronto and London - seeing as we share a language and don't have major differences in culture. A merger between the SFX and ASX would result in an exchange capable of rivalling HK and Tokyo, at least if HK and Tokyo don't get the mergers that they too are looking into. The alternative of course is for the ASX to seek an aquisition themselves, but it very much looks like a merge or dissapear scenario.