• University of New South Wales
  • Macquarie University
  • The University of Sydney
  • University of Technology Sydney
  • Australian National University
  • The University of Melbourne
  • Capital Markets
  • Sirca
  • Commonwealth Bank
  • KPMG
  • King & Wood Mallesons
  • Macquarie
  • Australian Government - Treasury
  • New South Wales Goverment

CIFR Research Project

Success and Failure in Stock Exchange Consolidations: Implications for Markets and their Regulation - E016
Assessment Round: November 2012  Completion Date: 2016
Project Summary

Stock exchange mergers are not a new phenomenon. Domestic and regional exchanges have been consolidating for decades. However, the epochal merger in 2007 of the New York Stock Exchange with Paris-based Euronext, itself a consolidation of several European exchanges, was a game changer, prompting the expectation that a truly global exchange would not be far behind.  Other exchanges scrambled to forge alliances and a sometimes frenzied courting game ensued.


The project aimed to investigate why some consolidations succeeded whereas others failed. The project also examined the market and regulatory implications of success or failure.


As the research proceeded, it became apparent that the forces driving stock exchange consolidations were foundering.


Politics inevitably played a role. Stock exchanges can be powerful national symbols, and governments appeared reluctant to relinquish them. Also, strong self-regulatory traditions could assist exchanges in sidestepping many formal regulatory impediments.


The exchanges were chasing growth through diversification across product and territorial borders, in the hope that scale would increase revenue and reduce costs. But markets were changing rapidly. The main competitors to exchanges were no longer other exchanges, rather alternative trading platforms. However, the technology that facilitated the creation of alternative trading platforms also provided alternative strategies to formal mergers. Formal mergers, with their very public displays of dominance, gave way to discreet strategic alliances and compatible trading platforms.


The paper, Success and Failure in Stock Exchange Consolidations: Implications for Markets and Their Regulation, provides a short summary of the origins and history of several exchanges engaged in the mating games. In order to assist in keeping the record straight as to who was making passes at whom and when and where, the paper provides a detailed timeline of the major merger activity over the last decade.


This research has been presented at:

Reconceptualising Global Finance and its Regulation
Hong Kong University, Hong Kong (December 2013)


CD Institute Seminar Series
(November 2013)


Team Leader:
Associate Professor Cally Jordan | Director, International Relations Melbourne Law School , Centre for Corporate Law and Securities Regulation, Melbourne Law School, University of Melbourne
Project Outputs:


The Centre for International Finance and Regulation (CIFR) represents a strategic link between academia, financial regulators, policy makers and industry, promoting financial sector vibrancy, resiliency and integrity, through leading research and education.

CIFR receives funding and support from the Commonwealth and NSW Governments, and its industry, university and research centre partners.



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