(Image source: Wikimedia Commons)

BY JIM FLINK

ANCHOR LAUREN GORES

You can just about put the New York Stock Exchange on ICE today.  ICE -- Intercontinental Exchange -- has agreed to buy the world’s most venerable stock exchange for a steamy price.  Bloomberg has the details.

“This is also a deal that involves, not just stock exchanges but also derivative exchanges as well here.  33/12 per share in stock and cash to try and make this deal happen.”

Now it’s up to regulators to determine if the deal’s a match -- or a mess.
New York Times’ Dealbook notes, if that happens, the 220-year-old exchange, would in effect, cede majority ownership to an upstart startup.

“The takeover signals the revival of consolidation within the world of market operators, after a wave of deals dissipated amid concerns over antitrust and nationalist sentiment.”

Here are the essential elements of the deal between ICE and NYSE:

*  An $8.2 billion dollar deal;
*  $33.12 a share, up 38% from Wednesday’s trading;
*  NYSE would still control roughly 36% of the stock

Now, lest you think there’s anything that’s business-as-usual about this deal, consider this.
USA Today reports, ICE wasn’t interested in NYSE’s stock trading business, which it notes, has been in decline since 2009.  

“ICE is targeting NYSE's LIFFE derivative exchange, which is based in London and will enable ICE to gain access to Europe's sought-after derivatives business.”

USA Today notes, the combination includes:

*  agricultural and energy commodities;
*  credit derivatives;
*  stocks and equity derivatives;
*  foreign exchange;
*  and interest rates.

According to an analyst on CNBC, that means this deal is part of seminal shift in the future of investing.


“...but it does mean that equity trading is not the wave of the profitable future. that really belongs to derivatives and futures.”

NYSE, ICE in Multibillion Dollar Buyout Deal

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Dec 20, 2012

NYSE, ICE in Multibillion Dollar Buyout Deal

(Image source: Wikimedia Commons)

BY JIM FLINK

ANCHOR LAUREN GORES

You can just about put the New York Stock Exchange on ICE today.  ICE -- Intercontinental Exchange -- has agreed to buy the world’s most venerable stock exchange for a steamy price.  Bloomberg has the details.

“This is also a deal that involves, not just stock exchanges but also derivative exchanges as well here.  33/12 per share in stock and cash to try and make this deal happen.”

Now it’s up to regulators to determine if the deal’s a match -- or a mess.
New York Times’ Dealbook notes, if that happens, the 220-year-old exchange, would in effect, cede majority ownership to an upstart startup.

“The takeover signals the revival of consolidation within the world of market operators, after a wave of deals dissipated amid concerns over antitrust and nationalist sentiment.”

Here are the essential elements of the deal between ICE and NYSE:

*  An $8.2 billion dollar deal;
*  $33.12 a share, up 38% from Wednesday’s trading;
*  NYSE would still control roughly 36% of the stock

Now, lest you think there’s anything that’s business-as-usual about this deal, consider this.
USA Today reports, ICE wasn’t interested in NYSE’s stock trading business, which it notes, has been in decline since 2009.  

“ICE is targeting NYSE's LIFFE derivative exchange, which is based in London and will enable ICE to gain access to Europe's sought-after derivatives business.”

USA Today notes, the combination includes:

*  agricultural and energy commodities;
*  credit derivatives;
*  stocks and equity derivatives;
*  foreign exchange;
*  and interest rates.

According to an analyst on CNBC, that means this deal is part of seminal shift in the future of investing.


“...but it does mean that equity trading is not the wave of the profitable future. that really belongs to derivatives and futures.”

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