Exchange Mergers

Mergers continued to occur in the 1970’s and 1980s but it wasn’t until the 1990s that mergers started to occur for a different reason. After 1990 mergers were being form to obtain operating efficiencies among two entities to compete against other players in an industry. Mergers have occurred in many industry including the airline, computer and retail industry. A particular business segment in which merger activity was not a common occurrence was among stock exchange institutions. There had been mergers in the past, but recently this segment of the financial services industry has been bombarded by multiple huge types of merger transactions among players in this industries including transaction across different international boundaries. This industry has changed and new alliances are changing the rules of the game. This paper studies the new tendencies of merging among stock exchanges and it describes the implication these new tendencies have in the Canadian exchanges and the investment atmosphere.
A stock exchange is a place on which shares of stocks and common stocks equivalents are bought and sold, basically a marketplace for financial assets (Investorwords). There are numerous stock exchanges in different parts of the worlds such as Canada, the United States, Australia, Japan, London, China, Europe among other locations. All these marketplace work independently but always have cooperated with each other when possible to satisfy the needs of clients when orders where placed for stocks not traded in their particular marketplace. The stock exchange business interest in the stock market is to have companies registered their stocks with their particular stock exchange to benefit from commission transaction of having companies participate in their particular exchange. The competition among exchanges became fierce and like other industries cost began to rise due to inflation and