Continued volatility in financial markets saw the FTSE/Mondo Visione Exchanges Index1 fall by 9.9 per cent in August.
The Index, which aims to reflect market sentiment and is a key indicator of exchanges’ performance, closed at 23919.07 on 29 August 2008, down from 26548.57 on 31 July 2008. Year to date, the Index has decreased by 50.3 per cent.
The FTSE/Mondo Visione Exchanges Index best performer by capital returns in US dollars, was NASDAQ OMX Group, Inc with a 17.7 per cent increase in the share price from July 31 to August 29, 2008.
The FTSE/Mondo Visione Exchanges Index worst performer by capital returns in US dollars, was Spain’s Bolsas y Mercados Espanoles with a 19.0 per cent decrease in the share price from July 31 to August 29, 2008.
Consolidation of the industry continued in August, and as a result two exchanges have been removed from the FTSE Mondo Visione Exchanges Index. On August 20, BM&F Bovespa SA, Stock, Mercantile and Futures Exchange started trading following the acquisition of Brazil’s Bovespa Holding SA by Bolsa de Mercadorias e Futures. On August 22 CME Group Inc. completed its acquisition of NYMEX Holdings, Inc.
Herbie Skeete, Managing Director of Mondo Visione and co-founder of the Index said:
"A slump across the Index can be seen again in August, but we should hopefully see a pick up in September following the U.S. government take over of troubled mortgage finance companies Fannie Mae and Freddie Mac. The decline in trading volumes at exchanges in August will hopefully be reversed in September.
Consolidation in the exchanges sector continues and August saw the CME consummate its merger with Nymex. With not much left to merge within the USA the next steps for the CME Group will likely be a step up in product innovation as well as acquisitions outside of the USA, perhaps in Asia.”
1The FTSE/Mondo Visione Exchanges Index is compiled by FTSE Group from data based on the share price performance of listed exchanges and trading platforms.
