Exchanges/Platforms

Blank M&A checks are getting too easy to write

22 Aug 2017

The NYSE relaxed voting rights and other rules to clear the way for shell companies like recent ones from TPG to list. Rival Nasdaq had been capitalizing on the resurgence of such acquisition vehicles. An otherwise weak IPO market is chipping away at investor protections.

Trading floors send hopeful signs on disruption

21 Aug 2017

Hong Kong’s bourse is closing its trading floor, the latest big exchange to do so. Globally, brokers in bright jackets have had a good run, given how little sense “open outcry” trading makes today. Nostalgia can protect some jobs from automation for a surprisingly long time.

China takes misplaced pride in stock meddling

17 Aug 2017

China's securities regulator credits a crackdown on financial risk for rallying indexes, cutting volatility and rationalising prices. Thus, curbs on derivatives in place since 2015 have been lifted. Officials have learned worryingly little about moral hazard since the last crash.

Speed bump warranted in China-Chicago bourse trade

13 Jul 2017

Some U.S. lawmakers want the SEC to block the sale of the Midwest exchange to Chinese investors. Their concerns are largely fear mongering. But as self-regulators, all such venues will soon get access to customer data as part of a new audit trail. That justifies closer review.

MSCI gives investors a shot of China’s old economy

21 Jun 2017

The U.S. index provider took the historic step of adding some mainland-listed shares to its global benchmarks. The new entrants include a raft of banks, manufacturers, and raw-materials firms. This will expose foreign investors to sectors challenged by high debt and low growth.

China index inclusion more form than substance

20 Jun 2017

After deciding against it for three years, MSCI will finally add 222 mainland-listed shares to its global benchmarks. This will be a relief for Beijing, which got egg on its face at prior reviews. But the move is largely symbolic and will generate only modest inflows to China.

EU clearing row shows limits of UK taking control

13 Jun 2017

The European Union won’t force trading in euro-denominated derivatives to leave London. But it will require UK-based clearing houses to follow EU regulations, or lose out. It’s proof that post-Brexit Britain will have to play by European rules – but lose any say in setting them.

China puts currency market forces on notice

26 May 2017

It may tweak the way the yuan is priced each day, effectively giving policymakers more control over its value. In reality, the daily price-fixing is only a small part of how China manages its currency. It’s another step back from reform and suggests mounting economic worries.

London could trip on Aramco’s IPO red carpet

4 May 2017

The city’s stock exchange is considering a new kind of governance-lite listing to attract the Saudi oil producer. Innovation is okay, if new rules are clear and existing ones aren’t watered down. Too naked a desire to please the powerful, though, would hurt London’s reputation.

China-Hong Kong “bond connect” has dual benefits

20 Mar 2017

Beijing is firming up plans to let mainland and Hong Kong investors trade in each other's debt markets. The tie-up will make it easier to get Chinese bonds into world indexes. It should also boost trading and push up prices in the territory's fixed income market.

LSE and Deutsche Boerse get a gift neither wants

27 Feb 2017

The exchange merger looks sunk after European regulators demanded a sale of an LSE trading platform. That’s not so bad - especially for LSE, which might find suitors elsewhere once Britain’s future is clearer. Besides, investors had only priced in a sliver of the deal’s benefits.

China’s unicorn shortcut sidelines IPO reform

27 Feb 2017

The securities watchdog is mulling faster listing approvals for big tech firms. Letting Jack Ma's $60 bln Ant Financial jump the queue may convince other entrepreneurs to follow, eschewing New York and Hong Kong. But this would be a poor substitute for meaningful IPO reform.

HK exchange seeks to shed old-economy dependency

20 Jan 2017

The Hong Kong bourse wants to shed its overdependence on real estate and finance. A proposed new board with lower entry barriers and weighted voting rights may lure hot startup tickers. But getting off the ground fast will be tricky given unresolved issues on the main board.

Sterling crash mystery lacks suspect – and victims

13 Jan 2017

There was no single trigger for the sudden 9 percent drop in the value of the pound on Oct. 7, a committee of central bankers has found. Big banks avoided major losses, and other markets were unaffected. Investors will have to learn to live with sharp but short-lived gyrations.

LSE-Deutsche Boerse faces Hessian headache

14 Dec 2016

While Brussels' antitrust watchdogs are narrowing their probe into the exchanges' merger, some German policymakers are increasingly uneasy over the plan to locate the holding company in London. A fuzzy mandate could make politicians in the state of Hesse hard to please.

Clearers’ worst-case scenario requires EU own goal

14 Nov 2016

A London Stock Exchange-commissioned report reckons Brexit could lead to the loss of up to 83,000 market infrastructure jobs in the UK. This most painful outcome might cost banks at least $77 bln, says a UK data provider. It's in European interests to avoid that outcome.

Missed stock connection hurts China’s reform drive

27 Oct 2014

Regulators have delayed a flagship scheme to connect the Hong Kong and Shanghai exchanges. Protests, market jitters and tax issues may have been factors. The problem is that investors are in the dark. The uncertainty damages confidence in the plan, and in other Chinese reforms. 

NYSE vs Nasdaq is IPO trading at the margins

30 Jun 2014

Decisions like Alibaba’s about where to list captivate investors even though exchanges no longer compete on vital matters like liquidity. The Facebook debacle did briefly revive a debate over technology. In the end, though, little things like ticker symbols can swing the vote.

Euronext IPO will be a tough sell

10 Jun 2014

The European exchanges group reckons it’s worth up to 1.8 bln euros. The pitch relies on a 5 pct revenue growth target. With turnover declining since 2011, that’s optimistic. Anchor investors have a vested interest in backing the float. For other buyers, it’s a leap of faith.

LSE’s tilt at Russell is a long shot

13 May 2014

London Stock Exchange is in talks to buy the Seattle-based compiler of small-cap stock indexes for a reported $3 bln. Pushing deeper into data makes sense. Yet LSE must face down rival bidders and sceptical shareholders. It also needs a plan for Russell’s asset-management arm.