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The exchange sector heated up at the end of February as Deutsche Boerse and London Stock Exchange Group revealed that they were in discussions about a potential merger of equals. The deal is structured as an all-share merger under a new holding company, where Deutsche Boerse shareholders would receive 1 share in the holding company per 1 Deutsche Boerse share held and London Stock Exchange Group shareholders would receive 0.4421 shares in the holding company per London Stock Exchange Group share. This gives Deutsche Börse shareholders a 54.4% stake in the united market operator.
On the last day of February market sources indicated that Intercontinental Exchange was considering a bid for London Stock Exchange Group.
The FTSE Mondo Visione Exchanges Index recovered most of the month’s losses by news of the potential merger between Deutsche Boerse London Stock Exchange Group and the potential counterbid for London Stock Exchange Group.
The Index*, which aims to reflect market sentiment and is a key indicator of the exchanges’ performance, saw a 0.7 per cent decrease in February 2016.
Commenting on the Index which closed down at 32,341.98 on 29 February 2016, Herbie Skeete, Managing Director, Mondo Visione and Co-founder of the Index said: “Regulators will likely take a good look at the clearing side of any tie-up. With other exchanges mulling entering the fray, the next two weeks will likely see the index trending higher”.
The FTSE Mondo Visione Exchanges Index best performer by capital returns in US dollars was Dubai Financial Market with a 21.1 per cent increase in share price from 29 January to 29 February 2016. The next best performer was Brazil’s BM&F Bovespa with a 14.4 per cent increase over the same period.
The FTSE Mondo Visione Exchanges Index worst performer by capital returns in US dollars was Euronext with a 20.5 per cent decrease in share price from 29 January to 29 February 2016. This was followed by Intercontinental Exchange with a 9.6 per cent decrease over the same period.
March will be an interesting month for Exchange watchers.
Monthly FTSE Mondo Visione Exchanges Index Performance (Capital Return, USD)
|
July 2014 |
3.1% |
|
August 2014 |
2.3% |
|
September 2014 |
-3.6% |
|
October 2014 |
2.8% |
|
November 2014 |
2.5% |
|
December 2014 |
-0.5% |
|
January 2015 |
-1.0% |
|
February 2015 |
8.5% |
|
March 2015 |
0.0% |
|
April 2015 |
10.7% |
|
May 2015 |
0.1% |
|
June 2015 |
-3.2% |
|
July 2015 |
-2.7% |
|
August 2015 |
-5.3% |
|
September 2015 |
-2.1% |
|
October 2015 |
7.6% |
|
November 2015 |
0.4% |
|
December 2015 |
-2.2% |
|
January 2016 |
-4,7% |
|
February 2016 |
-0.7% |
About FTSE Mondo Visione Exchanges Index
The FTSE Mondo Visione Exchanges Index, a joint venture between FTSE Group and Mondo Visione, was established in 2000.
It is the first Index in the world to focus on listed exchanges and other trading venues. The FTSE Mondo Visione Exchanges Index compares performance of individual exchanges and trading platforms and provides a reliable barometer of the health and performance of the exchange sector.
It enables investors to track 27 publicly listed exchanges and trading floors and focuses attention of the market on this important sector.
The FTSE Mondo Visione Exchanges Index includes all publicly traded stock exchanges and trading floors:
- Australian Securities Exchange Ltd
- BM&F Bovespa
- Bolsa Mexicana de Valores SA
- Bolsa y Mercado Espanoles
- Bulgarian Stock Exchange
- Bursa de Valori Bucuresti SA
- Bursa Malaysia
- CBOE Holdings
- CME Group
- Deutsche Bourse
- Dubai Financial Market
- Euronext
- Hellenic Exchanges SA
- Hong Kong Exchanges and Clearing Ltd
- IntercontinentalExchange Inc
- Japan Exchange Group, Inc
- Johannesburg Stock Exchange Ltd
- London Stock Exchange Group
- Moscow Exchange
- Multi Commodity Exchange of India
- Nairobi Securities Exchange
- Nasdaq
- New Zealand Exchange Ltd
- Philippine Stock Exchange
- Singapore Exchange Ltd
- TMX Group
- Warsaw Stock Exchange
