ASX deal launches exchange market action

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The Singapore Exchange's $8.3 billion bid for its Australian counterpart indicates just how hot emerging markets stock trading is going to become, according to players who know best. This could theoretically become a huge emerging markets theme.

Three years ago, exchanges were the hottest things out there, culminating in the New York Stock Exchange's NYX $11 billion buyout of EuroNext and the Nasdaq's NDAQ $3.7 billion buyout of the Scandinavian OMX. While Australia is a thriving market, this deal demonstrates just how much someone will pay -- or rather, overpay -- for a credible bulkhead when the next round of consolidation heats up.

Watch the BM&F in Brazil as the poster child for what you might see when the globe gets back on track. We are already seeing overtures from Russian exchanges, Middle Eastern exchanges -- everything is in play again.. The question is how to trade it.


While NDAQ had a good day today, it is most likely to emerge as a buyer and not a seller at this point. NYX actually lagged the markets, perhaps because the Singapore-Australia deal would create a credible global competitor. Otherwise, foreign exchange operators rarely choose to cross-list their shares, making ADR opportunities scant. However, you can trade Germany's Deutsche Boerse DBOEY and the Hong Kong Exchanges & Clearing Co. HKXCY:

With twice the market cap as NDAQ, DBOEY is also likely to emerge as a buyer instead of a seller. But even though HKXCY is bigger than both of them put together, shares jumped over 5% today on speculation that the Pacific Rim in particular is about to heat up.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: News Headlines , International , Investing Ideas

Referenced Stocks: DBOEY , HKXCY , NDAQ , NYX

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