Business

Recent consolidations of major traders

There have been several mergers of major stock markets in recent years. Here's a chronological look at some of them.
Xavier Rolet, left, CEO of the London Stock Exchange, and Thomas Kloet, CEO of TMX Group, shake on it at a news conference in Toronto on Feb. 9, 2011, announcing the proposed merger of the two exchanges. ((Chris Young/Canadian Press))
The proposed merger of the TMX Group and the London Stock Exchange Group is the latest in a long line of stock market consolidations. It may be a case of bigger is better when it comes to competing on the global trading stage.

Here's a list of some recent market mergers:

Feb. 9, 2011: NYSE Euronext, which operates the New York Stock Exchange, announces it is in advanced merger talks with Frankfurt-based Deutsche Borse, which runs Germany's largest exchange. If the deal goes through, Deutsche Borse will hold 60 per cent of the combined company, making it the world's largest exchange operator by revenue and profit.

Feb. 8, 2011: The TMX Group, operator of the Toronto Stock Exchange and the Toronto Venture Exchange, announces it has agreed to merge with the London Stock Exchange Group. If approved, the merger will create the world's biggest stock exchange, with more than 6,000 companies traded, including the vast majority of the world's publicly traded energy and resource companies. The deal requires regulatory approval from the Canadian government.

Oct. 25, 2010: The Singapore Exchange and the ASX, Australia's main stock exchange operator, agree to an $8.3-billion US merger, creating Asia's fourth-largest stock exchange. It is the first major consolidation of Asia-Pacific exchanges. The deal is awaiting approval from Australia's Foreign Investment Review Board.

March 17, 2008: CME Group — the world's largest futures market — buys Nymex Holdings Inc., parent company of the New York Mercantile Exchange and the world's largest energy market, in a deal valued at $8.9 billion US.

Dec. 10, 2007: The TSX Group announces a deal to acquire the Montreal Stock Exchange in a $1.3-billion merger. The new company would be known as the TMX Group, with the Montreal branch focusing solely on trading in derivatives. The Montreal exchange has limited itself to derivatives since 1999. The Caisse de dépôt et placement du Québec pension fund — which has an eight-per-cent stake in the Montreal exchange — called for a public inquiry into the merger amid concerns that the larger entity could eventually fall into foreign hands. At the time, Nymex Holdings had a 10-per-cent ownership stake in the Montreal exchange.

Nasdaq's bid to gain control of the London Stock Exchange failed on Feb. 10, 2007. It has since acquired several other smaller exchanges. ((Kathy Willens/Associated Press))
Nov. 7, 2007: Nasdaq buys the Philadelphia Stock Exchange.

Oct. 2, 2007: Nasdaq buys the Boston Stock Exchange.

May 5, 2007: Nasdaq announces it's buying OMX — which controls seven Nordic and Baltic stock exchanges — for $3.7 billion, forming Nasdaq OMX Group. The deal is finalized in February 2008.

April 4, 2007: NYSE Group Inc, merges with Euronext NV, an Amsterdam-based provider of securities brokerage services. The deal is worth approximately $10.2 billion. The new company is called NYSE Euronext.

Feb. 10, 2007: Nasdaq's bid to buy the London Stock Exchange fails after not enough shareholders accept the offer. Nasdaq had acquired a 29-per-cent stake in the LSE.

Oct. 17, 2006: The Chicago Mercantile Exchange and the Chicago Board of Trade announce plans to merge, the biggest deal to date in a global consolidation of financial exchanges. The Chicago Mercantile Exchange paid $11.9 billion US for its smaller cross-town rival, giving the new company — the CME Group — a valuation of more than $22 billion US.

July, 2006: Australian Stock Exchange Ltd. acquires SFE Corp. Ltd., a Sydney-based commodities future exchange, in a deal worth $1.59 billion US.

2001: The Toronto Stock Exchange acquires the Canadian Venture Exchange, which was created two years earlier when the Vancouver and Alberta stock exchanges merged. The new company was named the TSX Venture Exchange.