Excellent overview of stock exchanges, their actions and their future.
Economist.com | Articles by Subject | Financial exchanges: "So much for the notion that liquidity and technology will inevitably make trading a natural monopoly. NASDAQ's overwhelming market share in stocks not listed on the NYSE and American Stock Exchange disappeared a decade ago. It has never returned, despite the acquisition of its largest competitor, Instinet. Up to two-thirds of transactions in British shares and perhaps 75% of German share trades now take place off-exchange, according to Hans-Joachim Voth, an economist at Barcelona's Pompeu Fabra university. "
The pressure to merge comes as technology and market practice takes more of the secondary market and liquidity away.
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