- Patrick Young
- Financial Times FT.com
- www.ft.com
Summary
The exchange industry is enduring a post bubble malaise but the prospects for investment remain considerable.
Analysis
It’s fascinating to note how the London Stock Exchange, a market which was largely bereft of “sexy” derivatvies revenue until the Borsa Italiana transaction has such good margins… All the same every cent of margin at LSE just encourages the likes of CHi-X and other MTFs to continue attacking the London franchise.
However, while deals may look attractive from many standpoints, the lack of cash in exchanges may be a significant problem for any of the deals which, for instance, Reto Francioni of Deutsche Borse recently mooted.
Nevertheless, the key issue is to note that even if volumes are not so giddy as they were in the past year, exchanges provide some very good investment opportunities…and after all not many are public, the marketplace in shares of not publicly quited bourses are simply fascinating the world over…
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