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Tuesday, 11 October 2011

Borse Dubai backs mergers among global exchanges - MarketWatch

Borse Dubai will continue to support moves toward greater consolidation in the global exchange industry, despite the failure of recent high-profile moves to link exchanges in which it has significant equity holdings, according to the chairman of the government-controlled investment firm.

"The potential for consolidation in the exchange industry remains, despite some recent hiccups, given the argument for scale," Borse Dubai Chairman Essa Kazim told Dow Jones Newswires in an interview this week. "Scale always makes sense and consolidation helps as it creates value in terms of costs and exploiting other business synergies," Kazim added.

Borse Dubai has a significant voice in the global exchange industry by virtue of its stakes in the London Stock Exchange Group (LSE.LN) and in Nasdaq OMX Group NDAQ +4.19% , both of which were involved in recent merger proposals that eventually fell apart. The London Stock Exchange abandoned a planned merger with Canada's TMX Group Inc. TMXGF +2.32% in June, after failing to win shareholder support amid strong opposition to the deal within Canada; Nasdaq OMX's attempt to buy NYSE Euronext NYX +6.16% was blocked by the U.S. Justice Department.