Tuesday, November 21, 2006
@10:54 PM
7 banks to create equities marketThis article appeared on the Business Times on the 16th Dec. I was waiting for more follow-up news on it before I comment on it. Anyway, here's an extract. If you are in the finance industry, this might be of an interest to you.
SEVEN leading investment banks intend to create a pan-European electronic equities market to rival the London Stock Exchange (LSE) and other European markets. The seven investment banks are Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley and UBS. They will encourage other investment banks and brokers to participate in the new market, and these others will use the system on an equal footing. Fund managers, pensions and individual investors in Europe, Asia, North America and elsewhere will be able to seek best transparent prices and best execution from the new market and competing European exchanges, according to an official.Quite a significant move in the finance industry, don't you agree? I don't really buy the words from that "official" as of now. Somehow, I feel that the implication is way too large. Transparency, cost of trading, insider info, liquidity, fair playing field and competition are some of the real concerns. Do you think this move will eventually take place in Asia? Maybe many many years down the road, but this first move by these 7 investment banks will be very interesting. Lets see what happens when trading commence in 2008.
by Str|fe
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