NYSE may announce merger with Euronext / NASDAQ has acquired one quarter of the London Stock Exchange

By Marcus Cake • May 22, 2006

The consolidation of stock exchanges is occurring. NASDAQ has acquired more than one quarter of the London Stock Exchange, and the NYSE is planning to merge with Euronext.

World Federation of Stock Exchanges monthly report for March 2006 provides an indicator to the relative sizes of these organisations.

The size and growth of those being acquired

For the year ending March 2006, the number of companies listed on the NYSE and NASDAQ fell 3.1% and 0.9% respectively. Could the decline in their home markets have inspired these major exchanges to acquire or merge? The number of companies listed on the London Stock Exchange grew by 7.7% and declined by 6.6% on Euronext. The London Stock Exchange and Euronext represent 6.8% and 6.5% of global market capitalisation.

The size of the combined entities

A combined NASDAQ / London Stock Exchange represents 15% of the number of global listed companies and 14.7% of global market capitalisation. A combined NYSE / Euronext represents 8.5% of the number of global listed companies and 25.7% of global market capitalisation.

The article Report: Euronext / NYSE close to merger, ABC News, 21st May 2006 provides additional commentary.

The article Stock exchanges: large exchanges decline? niche exchanges grow? provides additional statistical information.