Litigious exchange members not unique to NYSE
The demutualization of stock exchanges is not unique to the NYSE. The London Stock Exchange ("LSE") was demutualized in 2000. This demutualization process was similiar to that of the NYSE in that members of the bourse had a vote regarding whether it should be demutualized. Read about that here.
Once again, facts prevail, and it is clear that the arguments regarding ownership percentage allocation were about as useful as a professional wrestling referree (read: not at all useful). Now the CBOT is a public company that has seen its stock value rise from ~$55/share to ~$115/share in the course of about 9 trading days.
Every stakeholder in the CBOT (short sellers aren't stakeholders, they're stakesellers) has to be pleased with management's decision to demutualize and become a public company. It is now clear that the split of ownership is completely irrelevant as the market has set CBOT's value -- not an S4, not members, and not CBOT's management. As always, market forces prevail -- and they will for the NYX deal as well. If you're interested follow the link to read CBOT's S4 filing.
So, the LSE and the CBOT are two examples of exchanges that endured litigious members and ultimately had incredibly successful demutualization outcomes.
The London Stock Exchange is an ideal takeover target/merger partner for the NYSE. And given competition with Nasdaq, it makes sense to mention that in 2000, Nasdaq's management considered merging with the LSE. For whatever reason Nasdaq's plans fell through as they attempted to open exchanges in Europe.
In 2003, the Nasdaq tucked its tail between its legs and closed down its ambitious European exchange (the Easdaq located in Belgium). Read about that here.
And in 2002, the Nasdaq folded its Japanese operations, as it admittadly failed tremendously there.
Nasdaq's blunders in Europe effectively take it out of the European-market competition. They didn't make any friends with rival bourses while they were over there, and the fact that UK-based Barclays moved its ETFs over to ArcaEx hints towards amiability of British companies with the NYX.
In Europe, the NYSE has a strong chance to successfully integrate with an exchange like the LSE.
Once again, facts prevail, and it is clear that the arguments regarding ownership percentage allocation were about as useful as a professional wrestling referree.The Chicago Board of Trade ran into litigious members when it announced its plans to demutualize and become a public company. In this case, the minority member lawsuit ended with a verdict in favor of this minority group members. The suit was brought about because a small group of CBOT members opposed the allocation of ownership percentages once the transformation commenced.
Once again, facts prevail, and it is clear that the arguments regarding ownership percentage allocation were about as useful as a professional wrestling referree (read: not at all useful). Now the CBOT is a public company that has seen its stock value rise from ~$55/share to ~$115/share in the course of about 9 trading days.
Every stakeholder in the CBOT (short sellers aren't stakeholders, they're stakesellers) has to be pleased with management's decision to demutualize and become a public company. It is now clear that the split of ownership is completely irrelevant as the market has set CBOT's value -- not an S4, not members, and not CBOT's management. As always, market forces prevail -- and they will for the NYX deal as well. If you're interested follow the link to read CBOT's S4 filing.
So, the LSE and the CBOT are two examples of exchanges that endured litigious members and ultimately had incredibly successful demutualization outcomes.
NYX vs. Nasdaq in Europe
The London Stock Exchange is an ideal takeover target/merger partner for the NYSE. And given competition with Nasdaq, it makes sense to mention that in 2000, Nasdaq's management considered merging with the LSE. For whatever reason Nasdaq's plans fell through as they attempted to open exchanges in Europe.
In 2003, the Nasdaq tucked its tail between its legs and closed down its ambitious European exchange (the Easdaq located in Belgium). Read about that here.
And in 2002, the Nasdaq folded its Japanese operations, as it admittadly failed tremendously there.
Nasdaq's blunders in Europe effectively take it out of the European-market competition. They didn't make any friends with rival bourses while they were over there, and the fact that UK-based Barclays moved its ETFs over to ArcaEx hints towards amiability of British companies with the NYX.
In Europe, the NYSE has a strong chance to successfully integrate with an exchange like the LSE.
posted by . at 10:32 AM
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