Exclusive outtakes from industry leaders
In the last few years, the majority of the biggest players in the space, from New York Stock Exchange operator NYSE Euronext, and Nasdaq OMX, to Chicago Merc operator CME Group and InterContinentalExchange have gone public.
Several of the few non-public trading venues left, including options exchange CBOE, and electronic venues Liquidnet and Direct Edge, still have IPO plans.
But being public comes at a price — stressed-out employees with options and investors watching plunging stocks. According to the Dow Jones Global Exchanges Index, exchanges’ shares have fallen by nearly half since last May.
Now, that could be about to change, Nasdaq OMX President Magnus Bocker said at the Reuters Exchanges and Trading Summit. As Nasdaq looks for ways to attract new listings and end a virtual drought in IPOs, it sees financial services firms as one of the most promising areas.
The exchanges industry has seen countless trans-Atlantic mergers in the past few years, from the New York Stock Exchange combining with Euronext, and Nasdaq buying up Nordic exchange operator OMX, to Deutsche Boerse’e Eurex snagging the International Securities Exchange.
But you are not likely to see CME Group, parent of the Chicago Merc and the world’s largest derivatives exchange, flirt with any European counterparts anytime soon, CME CEO Craig Donohue hinted at the Reuters Exchanges & Trading Summit on Monday.
As if providing a trading platform, prestige and market data weren’t enough, stock exchanges are facing growing demands from the CEOs of their listed companies to help halt their stocks’ slide, BATS Trading CEO Joe Ratterman said at the Reuters Global Exchanges and Trading Summit on Monday.
Ratterman said he has been hearing of company bosses he calls “issuer-CEOs” giving the high-ups at rival exchanges, the New York Stock Exchange and Nasdaq, an earful when the stocks of those companies come under attack from short sellers.
But those two U.S.-based exchanges have had strong management to help them weather the storm, Liquidnet CEO Seth Merrin said at the Reuters Global Exchanges and Trading Summit.