NYSE and Euronext Merger

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NYSE and Euronext Merger

• Andrea Aiken
• Richard Regnier

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Background Information

• NYSE origins traced to 1792
• For profit organization- 2006
• Most investor-friendly market in world
• largest stock exchange in the world by dollar
  volume and the second largest by number of
  companies listed.
• global capitalization of 23.0 trillion as of
  September 30, 2006.

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Euronext

• Euronext created in 2000
• First genuinely cross-border exchange.
• It provides international services for regulated
  Cash Markets and Derivative Markets in Belgium,
  France, the Uk (derivatives), the Netherlands and
  Portugal.
• Number one exchange in Europe in terms of volume
  and value of transactions.
• Total market capitalization of 2.9 Trillion

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• NYSE group and Euronext combined on April 4, 2007
• Milestone for global financial markets
• First to create a truly global marketplace group
• Worlds largest and most liquid exchange group

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Merger Information

• Operates six markets in five countries.
• World leader for listings, trading and cash
  equities, equity and interest rate derivatives,
  bonds, and distribution of market data.
• Will offer issuers to list in two of the worlds
  leading currencies.
• Increasing visibility to investors
• US Dollar
• Euro

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Competition

• Total capitalization of companies listed is about
  28.5 trillion, greater than the combined total
  for the worlds next four largest exchanges
• London Stock Exchange
• Tokyo Stock Exchange
• Nasdaq
• Deutsche Borse

• Rivalry could also include Turquosie and other
  smaller banks

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NYSE Euronext says merger is just the start and
hope to expand to China

• Determined to create a truly global market
• First Trans-Atlantic exchange
• Has capacity to influence and attract other
  markets
• Plans on expanding operations into Asia

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NYSE Euronext says merger is just the start and
hope to expand to China

• Created to win back business from companies
  shying away from US markets strict regulation
• Russian companies not welcome due to concern of
  government regulation
• Own 5 stake in National Stock Exchange of India
• NYSE Euronext has strategic alliance with Tokyo
  Stock Exchange in Japan

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Future

• Welcome more European exchanges
• John Thain CEO, believes greatest opportunity for
  expansion is in China
• Though the Chinese Government will not currently
  allow NYSE Euronext to own a piece of any Chinese
  market

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Implications

• Expand global market
• Increase viewer ship for publicly traded
  companies
• Unify different world currencies
• Establishes their goal to create a truly global
  market

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Questions??