Investment Analysis Of Securities Exchange Sector Launched - First Global Review Reflects Growth In Importance Of The Sector

A new report published today assesses the global securities exchange industry and the forces that impact it. The publication, World Exchanges: Global Industry Outlook and Investment Analysis, is the first comprehensive review to offer a global perspective on the role and financial performance of the leading international securities exchanges.

The report, published by Mondo Visione (MV), is directed towards those who operate and invest in the global stock markets, but will be of equal interest to their customers, competitors and suppliers. It is also intended to be a significant reference point for the financial media and to academics and researchers.

World Exchanges reviews 15 exchanges from around the world with a combined market capitalisation of USD14 billion at the end of 2002. As a sector these institutions have outperformed the rest of the financial markets. The FTSE/MV index that tracks the share performance of listed exchanges rose 5.5% between August 2001 and April 2003, compared with a fall of 20.9% in the FTSE All World index over the same period.

In addition to examining the financial performance of both mutual and listed exchanges, this first edition of World Exchanges highlights five key factors influencing exchanges' operations and future plans:

1. Liquidity: the drive for more liquidity will lead to greater consolidation among exchanges and their systems, rather than fragmentation across venues;
2. Regulation: international and domestic regulation remains a force, especially as exchanges pursue cross-border business and further alliances;
3. Internalisation: large broker-dealers who match orders from their own books will represent a potential threat to exchanges;
4. Globalisation: international companies will continue to seek more cross-border listings, offering new sources of revenue for exchanges but also a more competitive landscape;
5. Technology: communications technologies will continue to advance as will electronic trading, leading to higher volumes, lower costs and increased competition from ECNs and other variants.

Commenting on the report, Herbie Skeete, Head of Mondo Visione, said: "Exchanges are behaving increasingly like the companies they list and face the same opportunities and challenges. This new report looks at these institutions on a global basis for the first time and offers authoritative data similar to that available in the more established sectors. Our aim is to provide consistent, reliable and impartial information on the performance and trends in the sector, highlighting key developments such as those we have flagged in the first edition".

Benn Steil, Andre Meyer Senior Fellow and Director of International Economics, Council on Foreign Relations, said: "The transformation of exchanges from quasi-public mutual associations to demutualised commercial entities is a significant global economic phenomenon. This volume is the first to attempt a comprehensive analysis of the exchange industry as a business, and it does so with impressive scope and depth. It is destined to be a standard reference for all of us working in and writing on the industry."

World Exchanges is published quarterly priced at £1,750 for a single issue or £2,250 for four quarterly issues.

It can be ordered directly from Mondo Visione on-line at www.exchange-handbook.com/WE_order.cfm .

The Executive summary of the first issue can be viewed on-line at www.exchange-handbook.co.uk/we_report.cfm .