The debate over exchange consolidation is an old one but may come to the fore again in the coming months as global policymakers debate how to re-regulate the financial system. Even today (April 2), international agreements on financial controls will be high on the agenda as world leaders meet in London for the G20 summit.
So far, market forces have had a considerable amount of their own way in determining which exchanges buy or merge with which others – subject to individual nations’ willingness to let foreign firms take over their exchanges.
But several large international groups have been formed – including CME Group, which is still largely US but has international ambitions; NYSE Euronext; Nasdaq OMX; Deutsche Börse; the London Stock Exchange, which owns Borsa Italiana; TMX Group; Intercontinental Exchange and...