The exchanges that are historically stuck with the stocks and the future contracts is now getting the hottest bet ever. The dominance of banks over the currency trading is the hottest bet that the exchanges have ever met before. Deutsche Boerse AG, which is running the Xetra stock market and the Eurex Futures exchange has entered in to the battle on last Sunday with a money of about 725 million Euros which is estimated to be $793 million. They have entered into the purchase of currency market. This decision was taken by the Deutsche group after seeing the Bats Global Market Inc wading into the battle with the money of $365 million on the hotspot before six months.
Banks were the backbone of currency trading
For a long term, the banks were the backbone for currency trading. But now the scenario is about to be changed and the exchanges are seeking for a new growth engine which would make alterations in the traditional ideas of the market. The foreign exchange is a huge territory with an amazing trade of about $5.3 trillion every day. Peter Lenardos, who is an analyst at the RBC capital market in London has mentioned in his statement about the foreign exchanges that the foreign exchanges are the largest and high liquidity producer in the world.
Both the Bats and the Deutsche Boerse have their roots in the stock exchanges only. The stock exchanges in Europe and US have seen the profit getting eroded usually because of the regulations in the exchanges that have spurred the competition in the market. The Nasdaq OMX group is one of the final bidders for both the 360T and Hotspot FX. This data was so familiar with the public and hence was known easily to the reporters too.
Acquisition approach
Both Bats and the Deutsche Boerse have recruited Chief Executive Officers (CEOs) for the new move and they seem to be more aggressive towards handling currencies. Under the new CEO, Carsten Kengeter, the Deutsche Boerse has taken the full control over the index companies Stoxx AG and the Indexium AG for about 650 million Swiss francs which was estimated to be $680 million. The diversifications that takes place in the business of index is getting reflected exactly the same in to the London stock exchange and also in to various other intercontinental stock exchanges.
Lenardos have told that Kengeter has indicated at the investors that he want to be more acquisitive and thus he is doing the same as he said. Kengeter has actually taken the job of CEO at the Deutsche Boerse on June following after his career with the UBS Group AG and also the Goldman Sachs Group Inc. the deal for the 360T will be financed by the debts and equities combined together. This transaction is under a high expectation that it will be increasing the earnings for per share rapidly. Lenardos told that Kengeter is buying at the multiples of peak.
Banks were the backbone of currency trading
For a long term, the banks were the backbone for currency trading. But now the scenario is about to be changed and the exchanges are seeking for a new growth engine which would make alterations in the traditional ideas of the market. The foreign exchange is a huge territory with an amazing trade of about $5.3 trillion every day. Peter Lenardos, who is an analyst at the RBC capital market in London has mentioned in his statement about the foreign exchanges that the foreign exchanges are the largest and high liquidity producer in the world.
Both the Bats and the Deutsche Boerse have their roots in the stock exchanges only. The stock exchanges in Europe and US have seen the profit getting eroded usually because of the regulations in the exchanges that have spurred the competition in the market. The Nasdaq OMX group is one of the final bidders for both the 360T and Hotspot FX. This data was so familiar with the public and hence was known easily to the reporters too.
Acquisition approach
Both Bats and the Deutsche Boerse have recruited Chief Executive Officers (CEOs) for the new move and they seem to be more aggressive towards handling currencies. Under the new CEO, Carsten Kengeter, the Deutsche Boerse has taken the full control over the index companies Stoxx AG and the Indexium AG for about 650 million Swiss francs which was estimated to be $680 million. The diversifications that takes place in the business of index is getting reflected exactly the same in to the London stock exchange and also in to various other intercontinental stock exchanges.
Lenardos have told that Kengeter has indicated at the investors that he want to be more acquisitive and thus he is doing the same as he said. Kengeter has actually taken the job of CEO at the Deutsche Boerse on June following after his career with the UBS Group AG and also the Goldman Sachs Group Inc. the deal for the 360T will be financed by the debts and equities combined together. This transaction is under a high expectation that it will be increasing the earnings for per share rapidly. Lenardos told that Kengeter is buying at the multiples of peak.