Deutsche Börse aims at universal importance

Financial world saw a new sign of European bourses consolidation when Deutsche Börse announced it has "invited" the Swiss Stock Exchange to discuss what it called "expanding our existing co-operation".

(PRWEB) July 23, 2004 -- Financial world saw a new sign of European bourses consolidation when Deutsche Börse announced it has "invited" the Swiss Stock Exchange to discuss what it called "expanding our existing co-operation".

Deutsche Börses desire to grow through merger and acquisition is widely known - three years ago its hopes of a merger with the London Stock Exchange were smashed by opposition from shareholders who were largely LSE customers. To date, being an equal partner with the Swiss exchange (SWX) in Eurex, its derivatives trading platform, the bourse was rumored to seek after becoming its sole owner.
    
For the time being, the London Stock Exchange has slashed tariffs for trading in Dutch equities and its rival, Euronext - where almost all Dutch equities are traded - has slashed its own fees in response, demonstrating to bankers the clear benefits of competition. Some analysts believe that further consolidation could help banks cut costs. Last year the LSE considered switching the clearing of UK equities to Eurex - such a move would have been interpreted as a signal of its intent to form a closer link with Deutsche Börse.
    
Meanwhile, the SWX, on which Deutsche Börse focus on, announced ambitions to become one of Europes leading stock exchanges in recent years: merging firstly with Tradepoint in June 2001, then with London-based electronic exchange, to form virt-X. It fell well short of its target and in December 2002, the Swiss exchange took full control of virt-X, which has since increased the number of non-Swiss stocks traded to more than 150.

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