Trying to follow the machinations surrounding the various securities exchanges both here and abroad is beginning to make our heads hurt. We have been of the belief that cross-Atlantic mergers were a logical outcome given the natural "regulatory arbitrage" at play.

A raft of writers at the Wall Street Journal try to get a handle on the current state of exchange deal making. Nasdaq's move to purchase a nearly 15% stake in the LSE has shaken up the mix of potential deals. Frankly a graphic the WSJ produced does a better job of summarizing what is up than we ever could.


breakingviews believes the Nasdaq should sit tight with their current stake and wait and see "..where the price settles before moving further." 

Dealbook notes two separate groups of investors have taken sizeable stakes in both the London Stock Exchange and Euronext.

One thing investors also need to keep in mind is that the current exchanges do not necessarily hold a monopoly over trading. New systems driven by cheaper technological and telecommunications costs continue to pop up. Jonathan Keeler at Institutional Investor profiles one firm that is providing able competition.

Launched five years ago, Liquidnet has helped transform the staid world of institutional trading and facilitate a movement away from classic trading desks. Founder Seth Merrin was able to bypass traditional traders through a combination of technical innovation and market insight, catapulting Liquidnet into the upper echelon of trading firms. Operating since 2001, the New York upstart reports a liquidity pool that averages 1.5 billion shares per day – the third largest in the U.S. behind the NYSE and Nasdaq.

To read all of our posts on the ongoing exchange saga click here.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.