Home  Journals  Finance and Credit  44(620) - 2014 November

Integration processes in the exchange environment: problems and development prospects

Available online: 23 November 2014

Subject Heading: Stock market

JEL Classification: 

Pages: 39-44

The article stresses the relevance of stock exchange consolidation problems existing at present time as many stock exchanges and exchange groups are in the process of consolidation. However, not only stock market is subject to integration processes, but also the economies of different countries in general. Therefore, it is fair to say that consolidation of stock exchanges is a natural stage of the global stock market development. The author describes integration processes in the stock market, reviews consolidation on various exchange platforms, and identifies the main trends in stock exchange merger. The author also suggests an idea about creation of a unified trading platform. The main advantage of stock exchange mergers is capital mobilization. Consolidation results in pooling equity capital, and this serves as an additional guarantee for stock exchange investors. Moreover, positive news and improved financial performance attract more investors to the market. The stock exchange becomes more competitive and enters the global market. Therefore there is an inflow of not only national, but also foreign capitals. There is a decrease in transaction and operational costs of investors, as well as a reduction in expenses for clearing. At the same time, the stock exchange extends its services, has an opportunity to trade in new instruments, and offers a wider choice of exchange products traded on one platform, which promotes cost saving. Through mergers, stock exchanges share their gained experience, improve the technique and mode of trading and enhance their technical system. In fact, they improve their performance in various areas, standardize the scheme of trading and trade settlements. This factor is positive for both the stock exchange and investors.

Keywords: securities market, investment activity, stock exchange, integration, consolidation, merger, absorption, competition

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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