european markets and trading

By: Jesse Scott

European Markets and Trading

Major European Markets

London Stock Exchange

Euronext

Deutsche Boerse

OMX Nordic Exchange

Borsa Italiana

SIX Swiss Exchange

BME Spanish Exchange

London Stock Exchange

Market Capitalization: 2.79 T (USD)

Number of Companies Listed: 2,792

Domestic: 2,179Foreign: 613

Ran by London Stock Exchange Group

Founded in 1801

2007 Merge with Borsa Italiana; purposed merger with Toronto Exchange

London Stock Exchange

Key Indexes:FTSE 100

Hours of Operation:8am – 4:30pm

Operates EDX London, Derivatives Market

Energy and Natural Resources

EuronextMarket Capitalization: 2.87 T (USD)

Number of Companies Listed: 1,160

Domestic : 990Foreign: 170

Ran by: NYSE Group

Operates Primarily in France, Belgium, Netherlands, and Portugal

EuronextKey Indexes:

Euronext 100

Hours of Operation:9am – 5:30pm

Euronext LiffeDerivatives MarketSecond Largest in Europe

Deutsche BoerseMarket Capitalization: 1.29 T (USD)

Number of Companies Listed: 783

Domestic: 704Foreign: 79

Ran by: Deutsche Boerse Group

Largest German Stock Exchange - Frankfurt

Deutsche BoerseKey Indexes:

DAX

Hours of Operation:9am – 5:30pm

EurexDerivatives MarketJoint Operations with SIX SwissLargest European Derivatives Market

OMX Nordic Exchange

Market Capitalization: 817 B (USD)

Number of Companies Listed: 797

Domestic: 773Foreign: 24

Ran by: Nasdaq Group

Includes Markets in: Finland, Sweden, Norway, Denmark, Iceland

OMX Nordic Exchange

Key Indexes:Nordic 40

Derivatives Market:Nordic Derivatives Market

Hours of Operation:9am – 4:30pm

Borsa ItalianaMarket Capitalization: 655 B (USD)

Number of Companies Listed: 296

Domestic: 291Foreign: 5

Ran by: London Stock Exchange Group

Based in Milan

Borsa ItalianaKey Indexes:

FTSE/MIB

Runs Italy’s Derivatives and Fixed Income Markets

Hours of Operation:9am – 5:30pm

Swiss ExchangeMarket Capitalization: 1.05 T (USD)

Number of Companies Listed: 339

Domestic: 275Foreign: 64

Ran by: SIX Group

Based in Zurich

Swiss ExchangeKey Indexes:

Swiss Market Index (SMI)

Derivatives:EurexJoint Operations with Deutsche Boerse

Hours of Operation:9am – 4:30pm

BME Spanish Exchange

Market Capitalization:

Number of Companies Listed: 3,472

Domestic : 3,435Foreign: 37

Ran by: BME Group

Operates several markets

Madrid, Barcelona, Biboa, and Valencia Stock Exchanges

BME Spanish Exchange

Key Indexes:Ibex 35

Derivatives:MEFFFocus in Energy and Financial Derivatives

Hours of Operation:9am – 4:30pm

Current EventsDeutsche Boerse proposes merger with NYSE Euronext

Deutsche Boerse will purchase $9.68B worth of stock giving the company a 60% shareProposed merger said to create $405M in synergiesWill become worlds largest exchange groupPossible regulatory issuesEurex and Liffe would combine to have 90% European market share in derivatives

Current EventsCounter-offer by Nasdaq OMX and ICE to by NYSE Euronext

$11.3B offer, 16% higher than Deutsche BoerseWill create $740M in synergiesNasdaq OMX acquires NYSE Euronext listings, equities, and options. ICE acquires NYSE Liffe derivatives markets, becomes 4th largest company in terms of global trading volume

Other M&A’s in the Equity Markets2007- NYSE purchases Euronext for $10.2B

London Stock Exchange to purchase TMX (Toronto) for $3.2B

BM&FBovespa (Brazil, 4th largest financial exchange operator) looking to make a move

Hong Kong Exchange

Australia ASX and Singapore Exchange $7.9 B deal maybe?

Why the Consolidation?

Battle On-line RivalsLosing Market Share to Electronic TradingIncrease Product OfferingsCost SavingsEscape Mature Business for Growth Opportunities

Questions