Germans buying NYSE?

Re: Germans buying NYSE?

very much so. London and Toronto exchanges already merged, as did the Chicago Merc and CBOT (Chicago Board of Trade). In a 24 hour economy with computers running program trading, having a bunch of guys running around on the floor from 9:30 to 4pm EST doesn't always make sense. New York City will put up a fight, since they want NY to be the financial capital of the world, but having a more global exchange makes sense.
 
Re: Germans buying NYSE?

I don't know if we need yet another acceleration in trading stocks. From my perspective it does more harm than good to the overall business. I have witnessed stupid business decisions just because of the fact that a company was not private. Plus the managers know they ruin the company in the long run.

Regarding the merger, does it really help? Does it "make more money"? I think, only the FED can do this...
But maybe they come up with another cross-trading, fog-blowing new financial product that shakes interest out of nothing. A supreme sub prime index may be what we need.

Anyway, I underestimated the size of the Deutsche Boerse, that seems to be almost double the worth, compared to the NYSE (that includes Euronext, 4 trading places in Europe).
 
Re: Germans buying NYSE?

I work for a financial company working in the US equity market. As time has passed, the exchanges have done less and less of the global trading business. There are no rules saying every share has to go through an official exchange - I can buy and sell shares from anyone I can find. We do much of our trading through alternative systems - "dark pools" of buyers and sellers that aren't necessarily listing their shares on an exchange. The commissions are less, and the prices don't necessarily track the official ask price. This is the magic of the internet - I can shop for the best price of a company I want to buy. Maybe it is through the official exchange, maybe it is on a "Craigslist" or "Ebay" type system.

As Ned said, a bunch of guys running around on the floor yelling at each other is a little passe.
 
Re: Germans buying NYSE?

TJ Cornish said:
I work for a financial company working in the US equity market. As time has passed, the exchanges have done less and less of the global trading business. There are no rules saying every share has to go through an official exchange - I can buy and sell shares from anyone I can find. We do much of our trading through alternative systems - "dark pools" of buyers and sellers that aren't necessarily listing their shares on an exchange. The commissions are less, and the prices don't necessarily track the official ask price. This is the magic of the internet - I can shop for the best price of a company I want to buy. Maybe it is through the official exchange, maybe it is on a "Craigslist" or "Ebay" type system.

As Ned said, a bunch of guys running around on the floor yelling at each other is a little passe.
Click to expand...

So true - back when I worked for what was then CS First Boston, they were thinking of opening up an Exchange in Hawaii to have 24 hour trading. The amount of trading that occurs "after hours" happens somewhere, whether there's a bunch of guys running around a "floor" or not.

I was also working summers on the floor back when Skoal Bandits came out; there's no smoking on the floor because of all the paper, so people tried it, and the floor became nasty quickly. I think it was banned a month later.
 
Re: Germans buying NYSE?

TJ Cornish said:
I work for a financial company working in the US equity market. As time has passed, the exchanges have done less and less of the global trading business. There are no rules saying every share has to go through an official exchange - I can buy and sell shares from anyone I can find. We do much of our trading through alternative systems - "dark pools" of buyers and sellers that aren't necessarily listing their shares on an exchange. The commissions are less, and the prices don't necessarily track the official ask price. This is the magic of the internet - I can shop for the best price of a company I want to buy. Maybe it is through the official exchange, maybe it is on a "Craigslist" or "Ebay" type system.

As Ned said, a bunch of guys running around on the floor yelling at each other is a little passe.
Click to expand...

Interesting. Of course trading can happen at more places now. So there are 2 dinosaurs that try to stay ahead of the game by growing even bigger? They could buy / assimilate all that smaller trading places to make profit with every trade, literally, floor or not...
 
Re: Germans buying NYSE?

To get serious for a minute (who me?)... I don't care who owns the exchanges (bourses), as long as they are operated fairly and honestly.

I have been invested in the stock market since the early '70s and today it is more liquid and we have better access to information. On the downside, I really don't like the games going on with high speed trading. The stock markets serve a very useful purpose in giving business access to individual's capital, and allowing individuals to share in the success of these larger businesses. I don't see how high speed (flash) trading contributes to this beneficial transaction, but conversely I see a way for slick individuals to game short term imbalances in the market to siphon wealth out of the system, away from individuals and business alike.

I do not care for taxes but in this case I would make an exception. We already have a capital gains tax... why not structure this tax along similar lines to the already existing distinction between short term and long term capital gains, to have another even higher rate for "very" short term capital gains. Where the tax rate increases inversely with the smaller the hold time. If the flash traders are paying an onerous tax rate, they might have to come up with a different way to make money, and we would all win. On the long term side maybe adjust those long term gains for inflation so we don't get hosed twice.

or not....

JR
 
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