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“Can You Picture Us in New York?”: Deutsche Borse to Gain Control of the New York Stock Exchange

COMMENT: It appears that the Deutsche Borse–con­trolled effec­tive­ly by those large Ger­man finan­cial firms con­trolled by the Bor­mann cap­i­tal net­work–will be pur­chas­ing NYSE Euronext, the par­ent com­pa­ny of “The Big Board.” This merg­er, if approved, would put the Ger­man share­hold­ers in the dri­ver’s seat. Thanks to the “cor­rec­tion-to-the-cor­rec­tion” below.

This is sig­nif­i­cant and should be viewed against the back­ground of Major Strasser’s ques­tion to Rick, played by Humphrey Bog­a­rt in Casablan­ca.

Strass­er asked: “Can you pic­ture us in New York?”

What do you think?!

“Merg­er Could Take NYSE Out of Amer­i­can Con­trol” by Chris Glo­rioso; nbcnewyork.com; 2/10/2011

EXCERPT: A Ger­man com­pa­ny is in high-lev­el talks to acquire the New York Stock Exchange, Wall Street’s most rec­og­niz­able insti­tu­tion.  Accord­ing to reports pub­lished in both the Ger­man and Amer­i­can finan­cial press, Deutsche Borse, a Frank­furt-based stock exchange is seek­ing to take a 60% own­er­ship inter­est in the NYSE.  The merg­er would cre­ate the world’s largest finan­cial exchange.

News of the deal sent both NYSE and Deutsche Borse stock soar­ing Thurs­day.

If US and Euro­pean reg­u­la­tors sign off on the plan, the new par­ent com­pa­ny would have dual head­quar­ters in Ger­many and Amer­i­ca.  The merg­er is not expect­ed to result in major lay­offs in New York.  How­ev­er, the ranks of face-to-face stock traders have already thinned con­sid­er­ablly on Wall Street in recent years. . . .

Discussion

11 comments for ““Can You Picture Us in New York?”: Deutsche Borse to Gain Control of the New York Stock Exchange”

  1. In Cana­da, we heard this week of a pro­posed merg­er between TSX, the Mon­tre­al-Toron­to stock exchange and the Lon­don Stock Exchange. Both provinces of Ontario and Que­bec have to approu­ve the merg­er. If I remem­ber cor­rect­ly, the “City” of Lon­don was the oth­er big play­er that par­tic­i­pat­ed in the financ­ing of Nazi Ger­many...

    Ques­tion: Is the Boor­mann Cap­i­tal Net­work in a process to buy North Amer­i­ca?

    Because we under­stand the con­se­quences: the net­work would have the capa­bil­i­ty to hurt or ruin any group, region­al economies, insti­tu­tions, gov­ern­ments, etc, that don’t sub­mit to their agen­da, sim­ply by deval­u­at­ing shares, pen­sion plans, cred­it rank, etc, through spec­u­la­tion or oth­er form of manip­u­la­tion. It cer­tain­ly smells bad...

    Events have been going at an incred­i­ble speed since the last cou­ple of weeks. The coin­ci­dence with the ‘upris­ings’ in the Mid­dle East and the WickedLeaks soup looks like a bad omen.

    Posted by Claude | February 11, 2011, 10:13 pm
  2. Hel­lo Dave,

    I believe this is a mis­un­der­stand­ing. The merg­er is to be with NYSE Euronext, a ‘divi­sion’ of the NYSE, not the main dish.

    http://www.bloomberg.com/apps/quote?ticker=NYX:US

    Posted by obo | February 12, 2011, 6:18 am
  3. And next thing you know, all the crack­pots, lunatics, shills, crooks and liars will say that the ‘Tal­mu­dic Jew­ish cabal’ or the Illuminati/Masons/Reptilians did this, etc...........but the truth is com­ing out.........even if only slow­ly.......

    Posted by Steven | February 12, 2011, 8:50 am
  4. Cor­rec­tion of Cor­rec­tion. NYSE Euronext is the par­ent cor­po­ra­tion of the NYSE aka “The Big Board”. If the pro­posed merg­er is approved by US and EU reg­u­la­tors, the Deutsche Boerse will own 60% of the com­bined enti­ty.
    Head­line:
    D.Boerse-NYSE deal faces antitrust snags

    “The com­pa­nies have released few details about the pro­posed merg­er, which would see Deutsche Boerse’s share­hold­ers in the dri­ving seat with 60 per­cent con­trol and cre­ate an exchange behe­moth with more than $20 tril­lion in annu­al trad­ing vol­ume.”

    http://www.reuters.com/article/2011/02/10/us-exchanges-idUSTRE7191GF20110210

    Posted by Curt | February 12, 2011, 10:31 pm
  5. Apolo­gies! My bad. Here’s a break­down:

    About NYSE Euronext NYSE Euronext (NYX) is a lead­ing glob­al oper­a­tor of finan­cial mar­kets and provider of inno­v­a­tive trad­ing tech­nolo­gies. The company’s exchanges in Europe and the Unit­ed States trade equi­ties, futures, options, fixed-income and exchange-trad­ed prod­ucts. With approx­i­mate­ly 8,000 list­ed issues (exclud­ing Euro­pean Struc­tured Prod­ucts), NYSE Euronext’s equi­ties mar­kets — the New York Stock Exchange, NYSE Euronext, NYSE Amex, NYSE Alternext and NYSE Arca — rep­re­sent one-third of the world’s equi­ties trad­ing, the most liq­uid­i­ty of any glob­al exchange group. NYSE Euronext also oper­ates NYSE Liffe, one of the lead­ing Euro­pean deriv­a­tives busi­ness­es and the world’s sec­ond- largest deriv­a­tives busi­ness by val­ue of trad­ing. The com­pa­ny offers com­pre­hen­sive com­mer­cial tech­nol­o­gy, con­nec­tiv­i­ty and mar­ket data prod­ucts and ser­vices through NYSE Tech­nolo­gies. NYSE Euronext is in the S&P 500 index, and is the only exchange oper­a­tor in the S&P 100 index and For­tune 500.

    Posted by obo | February 14, 2011, 6:12 am
  6. Web­mas­ter: please feel free to com­bine with pre­vi­ous:

    Hel­lo again. I dis­like mak­ing mis­takes and so went look­ing for the ori­gin of my error which was in the incom­plete rec­ol­lec­tion that the NYSE and Euronext were at one point not too long ago sep­a­rate enti­ties.

    Quote from linked arti­cle below:

    In 2006, NYSE and Euronext com­bined, ini­tial­ly sell­ing the deal as a merg­er of equals, but with­in a short peri­od of time man­age­r­i­al con­trol grav­i­tat­ed to New York.

    Here is a fol­low-up arti­cle on the merg­er (with spin?):
    http://www.reuters.com/article/2011/02/14/us-nyse-deutscheboerse-idUSTRE71D1MY20110214

    obo
    Life’s a game
    You either play it or you don’t
    If you do, you lose.

    Posted by obo | February 14, 2011, 6:40 am
  7. Wall Street doesn’t like this deal. It looks like a forced mar­riage. By whom?
    cf.
    Gold­man Sachs For­mer Chief White­head Says NYSE Deal ‘An Insult’
    http://www.bloomberg.com/news/2011–02-11/goldman-sachs-former-chief-whitehead-calls-nyse-s-planned-sale-an-insult-.html

    Wall Street’s Dead End
    http://www.nytimes.com/2011/02/14/opinion/14Salmon.html?_r=2&scp=1&sq=Felix%20salmon&st=cse

    Posted by Curt | February 14, 2011, 7:43 pm
  8. if you can read french or ital­ian I rec­om­mend you read Alfred wahl’s book pub­lished in 2006 by armand col­in in France under the orig­i­nal title: la sec­onde his­toire du nazisme dans l’alle­magne fed­erale depuis 1945. trans­lat­ed : the sec­ond his­to­ry of nazism in Ger­many after 1945. Good luck take of the sun­glass­es first the stock­ex­change, per­haps the fed
    and after the poor­house.......
    some­one will invent a final solu­tion.

    Posted by roodie | February 15, 2011, 11:57 am
  9. as an alter­na­tive to the above title anoth­er book(biography) under the title of “Der Banker” her­mann josef ABS writ­ten by Lothar Gall,published by C.H.Beck Publishers,(2004–2005)
    Abs of course was the lead­ing fig­ure at the Deutsche Bank inves­ti­gat­ed after ww2 by the british and con­se­quent­ly used by the nazi net­work until the 1980’s but active since the 1930’s in suck­ing up prop­er­ties in con­quered countries.How about a Bay­er aspirine now?or some BASF weed­killer con­tain­ing paraquat

    Posted by roodie | February 15, 2011, 12:07 pm
  10. Update: Right-wing biased Yahoo! News & AP spin DB-NYSE deal as “good for every­body,” over­due:

    http://news.yahoo.com/s/ap/20110216/ap_on_bi_ge/us_nyse_deutsche_boerse/print

    Long before Ger­man deal, NYSE was most­ly sym­bol­ic
    By DAVID K. RANDALL, AP Busi­ness Writer David K. Ran­dall, Ap Busi­ness Writer Tue Feb 15, 10:04 pm ET

    NEW YORK – Why would any­one want to sell a cen­ter­piece of cap­i­tal­ism like the New York Stock Exchange? Because despite its fame and its fabled floor, it’s a lousy way to make mon­ey.

    A Ger­man com­pa­ny will acquire the Big Board in a deal that cre­ates the world’s largest exchange oper­a­tor but does not stop the decades-long evo­lu­tion of stock trad­ing from shout­ing floor bro­kers to the cold, qui­et hum of com­put­ers.

    The deal announced Tues­day val­ues the New York exchange’s old par­ent com­pa­ny, NYSE Euronext, at $10 bil­lion. The NYSE and Euronext, which owns exchanges in sev­er­al Euro­pean cap­i­tals, merged in 2007.

    There was no imme­di­ate word on what changes might come to the cor­ner of Wall and Broad streets, the Corinthi­an-columned build­ing syn­ony­mous with glob­al finance, includ­ing what the new com­pa­ny would be named.

    Sen. Charles Schumer, D‑N.Y., called for NYSE to be first in the exchange’s new name. The Ger­man com­pa­ny, Deutsche Boerse, will con­trol 60 per­cent of the new com­pa­ny’s board of direc­tors.

    The exchange’s impor­tance in the com­plex web of the stock mar­ket is already large­ly sym­bol­ic.

    Most trad­ing now takes place on com­put­ers that can match thou­sands of orders a sec­ond. On some days, the floor of the exchange is one of the loneli­est places you could find your­self in a city of 8 mil­lion peo­ple. The floor of Deutsche Boerse’s exchange in Frank­furt has even few­er live traders. It now stands emp­ty except for a small group milling in front of com­put­er screens.

    Just like sell­ing shoes or air­line tick­ets, the prof­itabil­i­ty of pro­vid­ing a venue for the exchange of stocks is a vic­tim of tech­nol­o­gy. Facil­i­tat­ing the trad­ing of actu­al stocks makes up a small and decreas­ing part of NYSE Euronex­t’s rev­enue. The exchange makes more mon­ey from sell­ing com­plex finan­cial con­tracts, mar­ket data to com­pa­nies like Google and Yahoo that offer stock quotes, and the fees com­pa­nies pay to be list­ed on the exchange.

    Over­all, NYSE Euronex­t’s prof­it last quar­ter was $135 mil­lion, down more than 20 per­cent from a year ear­li­er. Its stock has lost 44 per­cent of its val­ue in the past three years.

    The New York exchange dates to 1792, when 24 bro­kers and mer­chants gath­ered to trade stocks under a but­ton­wood tree on Wall Street. Ten years from now, it’s not hard to imag­ine the floor of the NYSE, and its famil­iar perch where exec­u­tives ring the clos­ing bell, as noth­ing more than a high-priced venue for wed­dings and busi­ness recep­tions.

    By merg­ing with Deutsche Boerse, NYSE Euronext hopes at least to hold off less lus­trous rivals that have under­cut its fees and move fur­ther from the low-mar­gin stock trad­ing busi­ness. NYSE Euronext makes only three-hun­dredths of a pen­ny for every order of 100 stocks, says Richard Repet­to, an ana­lyst at San­dler O’Neill in New York.

    “In the U.S. and Europe, reg­u­la­to­ry rules have allowed any­one to launch a trad­ing plat­form and com­pete with the NYSE,” he says. “You have all these com­peti­tors who are fight­ing over the price, and the result is that it’s become a com­mod­i­ty.”

    Dai­ly trad­ing vol­umes show just how far “Wall Street” has grown beyond Wall Street. The aver­age num­ber of shares trad­ed each day on the NYSE floor has fall­en by a third over the past three years. Many orders are instead rout­ed through one of more than a dozen com­put­er­ized exchanges scat­tered across the nation, each com­pet­ing for trans­ac­tions by offer­ing faster exe­cu­tion.

    In this sys­tem, the fact that a com­pa­ny is list­ed on the New York Stock Exchange has lit­tle rel­e­vance because its shares trade on dig­i­tal exchanges housed in, say, a ware­house in New Jer­sey or an office park in Kansas City. Large invest­ment firms may also trade shares on pri­vate “dark pools” that allow big mutu­al funds to buy or sell stock with­out affect­ing its price or alert­ing oth­ers to the size of their order.

    “The exchange busi­ness is real­ly a com­put­er busi­ness these days,” says Charles Jones, a pro­fes­sor at Colum­bia Busi­ness School and a for­mer vis­it­ing econ­o­mist at the New York Stock Exchange. “You can real­ly save mon­ey on the I.T. side by hav­ing a com­mon plat­form. This merg­er is real­ly about the cost side of things.”

    The new com­bined com­pa­ny will have a big­ger foot­print in the more lucra­tive mar­ket for deriv­a­tives and futures con­tracts, the exot­ic finan­cial instru­ments that allow an investor to buy the option to pur­chase some­thing at a fixed price in the future. Hedge funds and oth­er sophis­ti­cat­ed investors buy futures con­tracts to place bets on com­modi­ties like oil prices or to pro­vide a form of insur­ance in case an invest­ment does­n’t work out.

    Futures con­tracts sell less fre­quent­ly than stocks, mak­ing the mar­ket for them less com­pet­i­tive. Fees charged on these trans­ac­tions are less like­ly to fall vic­tim to com­pe­ti­tion because each exchange owns its clear­ing­house. Clear­ing­hous­es set­tle each trader’s account each day and ensure that all con­tracts are ful­filled, an essen­tial part of the mar­ket struc­ture that is dif­fi­cult for a rival to under­cut.

    Deutsche Boerse is a large part of the Euro­pean futures busi­ness. The acqui­si­tion, which will leave investors in the Ger­man com­pa­ny with a 60 per­cent own­er­ship stake in the new enti­ty, will give the com­pa­ny own­er­ship of stock exchanges in Lis­bon, Paris, Ams­ter­dam, Brus­sels, New York and Frank­furt.

    The par­ent com­pa­nies of the Chica­go Mer­can­tile Exchange and the Nas­daq are down 40 per­cent and 33 per­cent after div­i­dends, respec­tive­ly, over the last three years. The Stan­dard & Poor’s 500 index is up 6 per­cent over the same time, includ­ing div­i­dends.

    The acqui­si­tion comes at a time when oth­er stock exchanges are com­bin­ing. Last week, the Lon­don Stock Exchange and the par­ent com­pa­ny of the Toron­to Stock Exchange announced a $2.9 bil­lion merg­er.

    Stock trad­ing by way of indi­vid­ual bro­kers is becom­ing a rel­ic in many ways. Many hedge funds and insti­tu­tions now trade using sophis­ti­cat­ed com­put­er pro­grams that are thought to make up about 70 per­cent of each day’s total vol­ume. Known as high-fre­quen­cy trad­ing, these pro­grams allow insti­tu­tions to own a stock for less than 60 sec­onds at a time and some­times with­out a human oper­a­tor know­ing what the com­put­er has bought.

    The NYSE, mean­while, has lost some of its lus­ter. Few­er pri­vate com­pa­nies under­take the rig­or­ous process of get­ting their shares list­ed on the Big Board. Insti­tu­tions, pri­vate equi­ty firms and ven­ture cap­i­tal­ists in Sil­i­con Val­ley have tak­en over from pub­lic share­hold­ers as financiers. Face­book, for instance, is now thought to be worth more than $50 bil­lion. The com­pa­ny’s shares trade on pri­vate exchanges.

    Investors who own com­pa­nies that are list­ed on the NYSE prob­a­bly won’t notice changes from the acqui­si­tion. The exchange will still be bound by U.S. secu­ri­ties laws and, to a cer­tain extent, tra­di­tion. Com­pa­nies and celebri­ties will prob­a­bly still clam­or to ring the open­ing bell on the floor of the exchange, if for noth­ing else than the media expo­sure.

    The acqui­si­tion still needs approval from Amer­i­can and Euro­pean reg­u­la­tors. The deal will like­ly go through in the U.S. because NYSE Euronext is not merg­ing with anoth­er Amer­i­can com­pa­ny like Nas­daq OMX Group, a com­bi­na­tion that could run afoul of antitrust laws, ana­lysts say.

    Experts say Ger­man own­er­ship of the New York Stock Exchange is some­thing that will not mat­ter to most lay investors.

    “The ques­tion is should we be angry that for­eign­ers are buy­ing our stock exchange? The answer is not real­ly,” said Roy Smith, a pro­fes­sor at New York Uni­ver­si­ty and a for­mer part­ner at Gold­man Sachs. “Finan­cial mar­kets are ful­ly glob­al­ized and that’s a good thing because that makes them more effi­cient.”

    Posted by R. Wilson | February 15, 2011, 11:52 pm
  11. I’ve hat­ed this pro­posed ‘merg­er’ from the get-go. but it’s a part of that teu­ton bund ambi­tion to attempt to make the US a vas­sel state, and that also includes the desire for the US to adopt and US IFRS, the euro­pean’s account­ing frame­work, as well as oth­er very harm­ful things that the US has been doing to suit the Ger­mans and their con­trol over much of Europe. This also would include the US con­tract­ing its own econ­o­my to meet the G20 con­straints on the US econ­o­my, but that also includes all the ‘free’ trade, the non tar­if­f’d trade agree­ments that vio­late Arti­cle 1 SEc­tion 8 of the US Con­sti­tu­tion. Thse we began aggres­sive­ly with NAFTA, which again any and all ‘free’­trade vio­lates the Con­sti­tu­tion, often is used to off­shore pro­duc­tion out of the US to con­tract our econ­o­my so taht we’ll not be com­pet­i­tive against the Ger­man’s export dri­ven econ­o­my. It believes it’s win­ning the war as long as every­one else is a lit­tle more weak than it is and they’re also get­ting even with us after WW1 when the British and French forced it to do ‘free’ trade while it was mak­ing repa­ra­tion pay­ments. That they had Rea­gan spend the For­mer Sovi­et Union into col­lapse and now us with engag­ing in ‘free’ trade that’s con­tribut­ing to col­laps­ing our econ­o­my has been it’s sub­tle blow to both it and us while itself is almost back if not back to full strength and reunit­ed. Ah, yes, the US Dept of Jus­tice, the SEC and Con­gress all have to reject this deal for the Ger­mans in effect to con­trol the US NYSE and by and large the US equi­ty and bond mar­kets that cross into NYSE domain.

    Even the OTC deriv­a­tives con­tract­ing has to be ceased and desist­ed; it is tru­ly the most insid­i­ous way for banks’ man­age­ment to self deal and engage in sophis­ti­cat­ed con­tem­po­rary feu­dal­ism fur­ther aggra­vat­ing the bifor­ca­tion of wealth into the hands of the few hived or con­tract­ed away from the hands of the many with the Crea­ture from Jekyl Island, the Fed mod­eled after euro­pean cen­tral bank­ing, to facil­i­tate the wealth redistribution/counterfeiting effect.

    Andrea Pso­ras
    New York, NY

    Posted by Andrea Psoras | February 21, 2011, 8:28 am

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