Is the proposed merger of NYSE and Euronext just protectionism for the US Dollar?
By merging the New York Stock Exchange and the European Stock Market Euronext, the Americans will have control of the Business Plans for the European Exchange. NASDAQ is also after the London Stock Exchange.
User Comments
- I don't follow your logic. Yes, the Americans will have majority control of both exchanges so in theory they could set up commodity exchanges trading in Dollars. But;
1. Many commodities (ex: Oil) are ALREADY traded in Dollars. One of the biggest energy exchanges in the world is ICE Futures based in London. A lot of their contracts have traded in Dollars for more than 20 years.
2. Setting up a new Exchange to trade Dollar commodities will not necessarily increase the value of the Dollar. For every person buying there will be someone selling.
3. If (for example) Nasdaq tries to insist that the largest stocks on the London Stock Exchange switch from trading in Sterling to trading in Dollars all they do is create a business opportunity for competitor exchanges. There is no law that says you have to go to the LSE to buy your Vodafone shares, if the new owners try and force everyone to trade in Dollars instead all they're going to do is ensure that all the trading goes to another exchange.
4. The regulators are already working on a deal which will mean that US regulators continue to manage US markets and European regulators continue to manage European markets. There have been a couple of smaller exchange mergers over the last 5 years where this has happened. What it means is that even once Nasdaq own the LSE the UK's Regulator will still be setting the rules and will be able to step in if they do something stupid. Like trying to force UK customers to trade Vodafone in Dollars. The Regulators can block any part of the deal before, during and after the merger. Unless Nasdaq is able to persuade the US Government to send the Marines into Canary Wharf to occupy the FSA there aint much they can do about it.
5. I have no idea what economic imperialism means. These takeovers are capitalism in action. They may not be the right thing to do, but all they are is pure capitalism.
- ARE YOU ASKING, OR HARANGUING?
- Yes but they won't.
They are true loyal puppy dogs, people on drugs don't think clearly, and most of our world leaders are heavy drinkers and coke junks.
Don't expect to much of them.
Oh btw we the people elected them in to office somehow.
So we the people are corrupted and blatantly ignorant as well.
I really wonder when Plato cooked up Democracy leaving the people to elect "the Wise people"of our community, if he ever would have come up with this bumbling babbling band of baboons.
- With this control, they are able to determine Business Strategies and ensure that any new Commodity Exchanges set up in Europe operate in Dollars - hence protecting the value of the Dollar.
- Surely this is pure economic imperialism and should be blocked by the European Financial Regulators?