LSE, SGX in merger talks, after trading agreement: Report
20 Jul 2012
The London Stock Exchange Group (LSE) is in talks with the Singapore Stock Exchange (SGX) about a potential 7.2 billion-pound ($11.3 billion) merger, the Daily Telegraph reported today.
In an article published on its website on Thursday, the Telegraph said the chief executive of the LSE Group, Xavier Rolet, has held a series of informal talks with SGX chief executive Magnus Bocker about a potential merger.
On July 11, the LSE and SGX signed an agreement for cross-trading of their largest and most actively traded stocks, expanding the international footprint of both the stock exchanges (See: London, Singapore stock exchanges sign trading pact).
Under this agreement, LSE members will be able to trade the top 36 SGX-listed companies on LSE's newly-created 'International Board' while SGX members will be able to trade FTSE100 securities on SGX's GlobalQuote Board, an LSE statement said.
The partnership will extend the trading hours for the most actively traded securities in both markets combined, to around 15 hours per day, providing market participants more opportunities for investment, trading and risk management.
A merger deal combining the two bourses would be behind NYSE Euronext and Nasdaq in terms of number of trades.