A truly Canadian solution? – 20 May 2011
First Published Friday, 20th May 2011 02:04 pm from Fidessa : Steve Grob
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The merger mania in the exchange space took another
twist last week when a consortium of Canada's largest banks and
There's a clue to the consortium's basic pitch in its
name - the Maple Group - and the rhetoric
from its spokesman Luc Bertrand, who cites the fact that Canadian
jobs will be saved in his all-Canada solution. This argument
target="_blank">LSE's "merger of equals" as the LSE
would have control over the combined group. History has shown,
however, that protectionism only really works if the country
concerned has some form of natural monopoly or real financial
firepower (e.g. China).
So, will a
Canadian-only stock exchange really be able to compete in the
global exchange space and can Canadian capital markets really
wait it out on the sidelines whilst other exchanges find
partners? If the answer to either of these questions is in doubt,
then maybe the LSE Group's bid is actually the better outcome for
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