Global exchange consolidation race heats up

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LONDON/HONG KONG - Deutsche Borse and NYSE Euronext competitors around the world create of plan, the world's largest stock and Futures Exchange has to search for partners, accelerated an industry shake up scurrying sent.

Traditional stock exchanges are under intense pressures from upstart electronic rivals like bats Europe and Chi-X Europe direct edge world's largest investment banks established the major bourses' to loosen grip on stock trading.

"Smaller players have really changed the face of this major players around the world, and so you are forced to merge," said William Karsh, former chief operating officer at direct edge, one of the two privately-run U.S. electronic trading operators, the NYSE and NASDAQ OMX have challenged.

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With key elements of the NYSE deal with Deutsche Borse to decide to make a marketplace with more than 20 trillion dollar annual trading volume could plan on the same rock founder past attempts of the merger between the German exchange and Euronext to prevent.

".. ."A long and tedious process, the complexity will be it the two legal systems and the need for multiple steps of the product authorisation", said a source of close to the deal.

Once notified, European Commission competition authorities have 25 days to decide the case.

"Given the fact that the merger creating the largest stock exchange in the world, there are many regulatory, corporate and competition issues are resolved," said Susanne Ruckert, partner and specialist for capital markets to German law firm FPS.

"A perfect test is whether the national authorities to make concessions for the further globalization of financial markets are prepared."

Hong Kong exchanges and clearing AG was quickly open the door for deals with another players following Thursday news, Deutsche Borse and NYSE lectures were advanced.

HKEx the world's largest exchange operator by market value, said it would keep international alliances or partnerships that were consistent with its focus on China.

Wednesday news of a bid by London Stock Exchange for Canada TMX, a wave of international mergers last seen revived in 2006 and 2007, followed by the Deutsche Borse talks with NYSE, and shifted the process of Exchange consolidation through multiple gears.

"Regional trade to serve gateways international institutional investors and the drivers are the race to create accelerated.", said Axel Pierron, analyst at Celent.

The proposed mergers a rally in shares of listed stock markets fueled worldwide. Australia ASX trying to overcome domestic opposition to a 7.9 billion takeover offer by the Singapore Exchange rose by 4.7 percent.

Aggressive, have eaten upstart markets deep in market shares of this traditional exchanges, forces to invest the big Board, LSE and other trading technology and higher-margin areas looking to grow.

Said before a financial authority to regional Hesse, must approve any merger agreement with Deutsche Borse, Frankfurt it would seek to safeguard the interests of the financial centre.

"The biggest risk of failure for the offer is antitrust concerns in the derivatives market at this time because Liffe and Eurex had a market share of more than 90 percent in Europe." "We hold these concerns as an exaggeration", said Stefan Brugger, Fund Manager at Union investment in Frankfurt.

Its headquarters in Frankfurt, will get with near the combined group derivatives unit during New York stock trading, two sources deal told of Reuters.

Faces to strengthen large political and regulatory hurdles in Australia, but while many investors the latest offerings appeared tie-up the case for the said other SGX's bid for ASX, LSE could now be seen as alternative partners.

"LSE makes clear a game on the mining resources side of things and Asia is generally very resource hungry, said Niki Beattie, consulting market structure partner."

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Alternately in London and the Australian stock exchanges have traditionally attracted a significant number of companies list of resources including heavyweights such as BHP Billiton.

The LSE's planned purchase of the Toronto stock market operator, the it the world's fourth largest and a top Center for growth industries mining and energy would make.

Other markets in Asia were reluctant to seek Tie-Ups due to the narrow ownership and political obstacles.

HKEx shares fell to most in about three months provide more competition. The Hong Kong Exchange has so far not displacement due to the avoided its grip on China-backed IPOs.

While the number of stock trading platforms is set to further shrink concentration in markets such as oil, gas, metals and other commodities somehow off with countries could provide keen control to security of supply to keep.

"Consolidation is less likely to see raw materials and energy, as Governments as being important strategic," said Frances Hudson, global strategist at standard life.

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