As the London Stock Exchange and Deutsche Boerse merger goes public, Traders looks back at the top stock exchange mergers that changed the financial world forever.
In 2012, Deutsche Börse halted a plan to merge with the owner/operator of the New York Stock Exchange after rumblings from antitrust regulators. This week, the German stock market operator revealed plans to merge with the LSE. Previously Deutsche Börse pursued mergers with the London Stock Exchange in 2000 and in 2005.
The last decade has been very busy for stock market mergers. The New York Stock Exchange, the second oldest market after Philadelphia, was acquired by Euronext and then by the IntercontinentalExchange.
In August of 2013, BATS and Direct Edge joined forces to take on Nasdaq as the second largest stock exchange by volume. The combined exchanges, which operate under the BATS name, did not announce the price tag of the mega deal.
The CME Group was the result of a 2007 merger between the Chicago mercantile Exchange and the Chicago Board of Trade. But it didn't end there: CME Group scooped up the struggling parent company of the New York Mercantile Exchange and Commodity Exchange. In 2012, CME abought the Kansas City Board of Trade, which was the key venue for trading hard red winter wheat.
In 2008, Nasdaq merged with Swedish-exchange operator OMX Group and became the Nasdaq OMX Group. This month, Nasdaq acquired Chi-X Canada, an Alternative Trading System for Toronto Stock Exchange and TSX Venture Securities, from Chi-X Global. The acquisition will provide Nasdaq with direct access to the Canadian equities market.
The Toronto Stock Exchange traveled a long road of mergers to become the 8th largest stock exchange in the world. Last decade, the LSE tried to purchase TMX Group, the owner/operator of the TSE.
In 2005, NYSE acquired Archipelago Holding, an automated trading pioneer that helped to replace NYSEs open outcry system with high-speed electronic trading. The new York floor would never be the same as machines did more and more jobs of human traders floor brokers.
Founded in 1790, the oldest exchange in the U.S., the Philadelphia Stock Exchange was bought by Nasdaq for a reported $652 million. The 2008 acquisition created the third-largest options market in the nation.
Once known as the New York Curb Exchange, the American Stock Exchange, this modest bourse was bought by NYSE Euronext for $260 million in 2008.
