The financial world is following with great interest the US$11.3 billion (Dh41.5bn) bid by Nasdaq OMX and IntercontinentalExchange to take over the NYSE Euronext (NYSE) exchange, improving an earlier bid by Deutsche Boerse of nearly $10bn.
Even though the NYSE board has rejected the bid, Nasdaq hopes the shareholders will overturn that decision. If successful, the Nasdaq-IntercontinentalExchange (Ice) bid will merge the three biggest equity and options exchanges and the 14th-largest derivative exchange in the US to form the biggest exchange in the world for equity and options trading (Nasdaq-NYSE) and the fourth-largest derivative exchange (Ice-NYSE).
There are urgent lessons for the UAE exchanges, which have been discussing a consolidation for some time but are no closer to achieving that important goal. In fact, the Abu Dhabi Securities Exchange (ADX) and Dubai Financial Market (DFM) have much more in common than Nasdaq, Ice and NYSE. The Nasdaq-Ice buyout of NYSE will be more complex than the merger of the ADX and DFM from technical, regulatory and financial perspectives.
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