The Exchange Guys

06-Feb-2008: Department of Justice raised concerns about regulations governing the trading of financial futures. In a submission to the Treasury Department, Thomas O. Barnett, assistant attorney general in Justice's antitrust division, argued that the regulatory framework surrounding clearance of financial futures stifles competition and hampers innovation.

There is a lot of buzz in M&A among exchanges around the world. On June 7, 2007, CEO of major exchanges in the world came to Global Exchange Conference in New York City. The goals of the meeting are:.

• 24-hour global exchange - trade at anytime
• One platform - trade anything from equities, derivatives, to commodities

Who will get there first?

• 28-Jan-2008: CME eyes NMX for about $11 billion.
• 10-Dec-2007: The Toronto Stock Exchange, Canada's largest stock and derivatives trading floor, will acquire the Montreal Exchange Inc. for about $1.29 billion.
• 12-Nov-2007: NMX has signed an agreement to acquire 15.1% of leading Norwegian financial derivatives exchange IMAREX ASA from Frontline Ltd. for approximately $52 million.
• 07-Nov-2007: NDAQ is acquiring Philadelphia Stock Exchange, one of the largest options markets, for $652 million in cash.
• 15-Jun-2007: Tokyo Stock Exchange spent about $304 million to buy a 4.99 percent stake in the Singapore Exchange.
• 05-Jun-2007: The Israeli Tel-Aviv Stock Exchange was in the midst of talks with NYSE Euronext about a possible alliance.
• Apr-2007: German stock exchange operator Deutsche Boerse AG acquiring International Securities Exchange for $2.8 billion.
• ICE bought the New York Board of Trade for about $1 billion.
• ICE has agreed to buy an 8 percent stake in India's National Commodity & Derivatives Exchange.
• NYSE bought Euronext for about $14.3 billion. The deal created the first trans-Atlantic stock market exchange.


• Bidding war between Nasdaq and Dubai over OMX
  
  • Borse Dubai expects to close the deal, with the Nasdaq Stock Market, to take over Nordic stock-exchange operator OMX by February 2008.
  • 06-Nov-2007: Sweden's Financial Services Authority will decide on Nov. 12 on the suitability of Borse Dubai as a potential owner of Nordic and Baltic exchange group OMX.
  • Sep-2007: Borse Dubai sweetened its bid for OMX for $4.99 billion.
  • 16-Jul-2007: Dubai bourse operator was preparing a counterbid worth 20 percent premium to Nasdaq's offer.
  • 25-May-2007: Nasdaq has agreed to buy Nordic stock-exchange operator OMX for about $3.7 billion to form the world's second trans-Atlantic financial market after NYSE Euronext.


• Bidding war between CME and ICE over CBOT
  
  • 12-Jul-2007: CME's $11.8 billion purchase of CBOT was completed.
  • 12-Jun-2007: ICE sweetened its bid for CBOT and intends to file a preliminary proxy statement to oppose the proposed acquisition of CBOT by CME.
  • 11-May-2007: CME sweetened its offer for CBOT in an attempt to end the bidding war. The merger between CME and CBOT will make more sense because the two trading platforms share a service to clear the contracts traded on its floors.
  • Mar-2007: ICE offered to buy CBOT for $9.9 billion in stock - to counteroffer $8 billion offer from CME.

Are M&As good for the exchange guys?

• NYSE Euronext, Inc. (NYX)
• Chicago Mercantile Exchange Holdings Inc. (CME)
• InterContinental Exchange, Inc. (ICE)
• Nasdaq Stock Market, Inc. (NDAQ)