Australian stock exchange

Introduction !!
The Australian Securities Exchange (ASX) was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia. ASX is a multi-asset class, vertically integrated exchange group, ranked one of the worlds top-10 largest by market capitalisation. Its activities span: - primary and secondary market services, including the raising, allocation and hedging of capital flows, trading and investing, and price and volume discovery (via Australian Securities Exchange); - central counterparty risk transfer (via subsidiaries of ASX Clearing Corporation); and - transaction settlement for both the equities and fixed income markets (via subsidiaries of ASX Settlement Corporation). ASX offers products and services including shares; futures, exchange traded options, warrants, contracts for difference, exchange traded funds, real estate investment trusts, listed investment [2] companies and interest rate securities.

biggest stocks traded

The biggest stocks traded on the ASX, in terms of their market capitalisation, include BHP Billiton, Commonwealth Bank of Australia, Westpac,Telstra Corporation, Rio Tinto, National Australia Bank and Australia and New Zealand Banking Group. As at March 2010 the three largest sectors by [3] market capitalisation were financial (36%), metal and mining (22%) and consumer (13%).

Timings
ASX operates two trading, clearing and settlement platforms, one for equity and related equity derivative products traded on an integrated trading platform between the hours of 10:00am and 4:00pm (AEST); and one for a suite of interest rate, equity index and commodity futures (and options on futures) products as well as Contracts For Difference (CFD), traded on a globally distributed 24 hour platform.

Market capitalisation
ASX has a pre-market session from 07:00am to 10:00am AEST and a normal trading session from 10:00am to 04:00pm AEST. The market opens alphabetically in single-price auctions, phased over the first ten minutes, with a small random time built in to prevent exact prediction of the first trades. [7] There is also a single-price auction between 4:10pm and 4:12pm to set the daily closing prices. As of 30 October 2010, 2,192 stocks were listed on the ASX with a total market capitalisation of A$1.4 trillion (US$1.4 trillion). As of 30 October 2010 it was the 6th largest world equity market (on free float basis), comprising around 3.4% of the S&P BMI and 3.2% of the MSCI World index. Average daily [8] turnover during 2010 was $5.5Abn.

Timeline of significant events

1980: The separate Melbourne and Sydney stock exchange indices were replaced by Australian Stock Exchange indices. 1984: Brokers' commission rates were deregulated. Commissions have gradually fallen ever since, with rates today as low as 0.12% or 0.05% from discount internet-based brokers. 1990: A warrants market was established. 997: Electronic trading commences as the option market moves from floor to screen. transition to the electronic CLICK system for derivatives began.
[14]

A phased

Mergers and aquisitons

2006: The ASX announced a merger with the Sydney Futures Exchange, the primary derivatives exchange in Australia. 2010: The ASX announced a merger with Singapore Exchange. 2011: Treasurer Wayne Swan finds the proposed merger with the Singapore Stock Exchange to not be in the best interests of Australia and refuses to grant permission for the merger.

Market indices
The ASX maintains stock indexes concerning stocks traded on the exchange in conjunction with Standard & Poor's. notionally containing the 20, 50, 100, 200 and 300 largest companies listed on the exchange, subject to some qualifications.

Germany stock exchange

Introduction
Deutsche Brse AG (German pronunciation: [dt bz]) or the Deutsche Brse Group, is a marketplace organizer for the trading of shares and other securities. It also is a transaction services provider. It gives companies and investors access to global capital markets. It is a joint stock company and was founded in 1993. More than 3,200 employees service customers in Europe, the U.S. and Asia. Deutsche Brse has locations in Germany, Luxembourg, Switzerland,Czech Republic and Spain, as well as representative offices in Beijing, London, Paris, Chicago, New York, Hong Kong, and Dubai.

Listed companies
. As of December 2010, the over 765 companies listed

Market capitalization
combined market capitalization of EUR 1.4 trillion. On 9 February 2011, reports suggested that NYSE Euronext and Deutsche Brse were in advanced [4] talks about an all-stock merger. Deutsche Brse was in advanced talks to buy NYSE Euronext in a deal that would create the world's largest trading powerhouse. The shares of both companies were temporarily frozen on the news due to the risk of large price movements and clarifications of the deal. A successful deal would see the new company becoming the world's largest stock exchange operator with a market capitalisation of listed companies equal to US$15 Trillion, US$13.39 Trillion of which is part of the much larger NYSE Euronext, which is approximately 6 times the size of Deutsche Brse. The European Commission blocked the merger on 1 February 2012, citing the fact that the merged [10] company would have a near monopoly. This is an extreme measure by the European [11] Commission, with this being only the 4th blocking in over a decade.

timings
9.00 am to 6.00 pm

Toronto

stock exchange

Introduction
Toronto Stock Exchange (TSX, formerly TSE) is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalization. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Groupfor the trading of senior equities. A broad range of businesses from Canada, the United States, Europe, and other countries are represented on the exchange. In addition to conventional securities, the exchange lists various exchange-traded funds, split share corporations, income trusts andinvestment funds. The Toronto Stock Exchange is the leader in the mining and oil & gas sector; more mining and oil & gas companies are listed on Toronto Stock Exchange than any other exchange in the world.

Timings
The exchange has a normal trading session from 09:30am to 04:00pm ET and a post-market session from 04:15pm to 05:00pm ET on all days of the week except Saturdays, Sundays and holidays [10] declared by the Exchange in advance.

market capitalisation
As of November 2010, Toronto Stock Exchange had 1,498 listed companies with a combined market [11] capitalization of CAD $2,105,570,021,017.

companies listed
The exchange is home to all of Canada's Big Five commercial banksCIBC, Bank of Montreal, Bank of Nova Scotia, Royal Bank of Canada and the Toronto-Dominion Bankmaking the exchange the centre for banking in the country. This was seen as being most evident during the proposed mergers of Royal Bank of Canada and Bank of Montreal alongside CIBC and Toronto-Dominion Bank in 1998, which were seen as stopping competition by the then Finance Minister Paul Martin. The exchange is the primary listing for several energy companies including; Cameco Corporation, Canadian Natural Resources Ltd., Canadian Oil Sands Trust, EnCana Corporation, Husky Energy Inc., Imperial Oil Ltd. and Nexen Inc. all within the top 40 companies listed in on the exchange. Many of the large companies listed on the TSX, especially those on the S&P/TSX 60 index have a secondary listing on an American exchange such as the New York Stock Exchange.

Hong Kong Stock Exchange (HKSE)

Although the trade of securities began in the middle of the 19th c., Hong Kong Stock Exchange was established at the end of the century. Today with its total securities market capitalization of a record sum of HK$ 8,260.3 billion (US$ 1,063.9 trillion), the HKSE ranks 8th place by market capitalization in the world. The HKSE has 4338 stocks listed on the exchange with the market turnover of HK$4,520.4 billion (US$ 0,582.2 trillion) in 2005. The turnover increased by 14% from the previous year. Local institutional and retail investors are the main contributors of market turnover (56%). The exchange also has a leading derivatives market in the Asia-Pacific region with the daily turnover of 103.332 contracts per day that has increased by even 30% from 2004. In 2000, the Stock Exchange of Hong Kong Limited, Hong Kong Futures Exchange Limited together with Hong Kong Securities Clearing Company Limited merged under a single exchange HKEx. HKEx listed its shares on the stock exchange in June 2000. The trading system of the Exchange is an order-driven system. HKEx securities market operates on two trading platforms - the Main Board and the Growth Enterprise Market (GEM). Each trading platform has a different set of requirements. The Main Board is the market for capital growth by established companies that meet profit requirements. Meanwhile, the Growth Enterprise Market provides a fund raising venue for 'high growth, high risk' companies. It promotes the development of technology industries and venture capital investments. In October 2000, HKEx developed a trading system AMS/3 consisting of four components Trading Terminal, Multi-Workstation System ('MWS'), Broker Supplied System ('BSS'), and Order Routing System ('ORS') that investors can choose among. The ORS allows investors to place requests electronically. In addition to trading through terminals in the Trading Hall, exchange participants are enabled to trade from their offices through installed off-floor terminals. The HKSE has the leading index the Hang Seng for shares traded on the Hong Kong Stock Exchange that was introduced in 1969. The Hang Seng index consisting of the 33 largest companies traded on the exchange represent around 70% of the value of all stocks traded on the HKSE.

Exchange history and predecessors

Association of Stockbrokers in Hong Kong (Founded 1891)

(1914) Renamed to Hong Kong Stock Exchange

(1947) A merger is made after World War II with Hong Kong Stock Exchange retaining the name

Hong Kong Stockbrokers Association(Founded 1921)

Hong Kong Stockholders Association Ltd (Founded 1978) allow info sharing between HKSE and other exchanges

Far East Exchange Ltd(Founded 1969)

Kam Ngan Stock Exchange Ltd(Founded 1971)

Kowloon Stock Exchange Ltd(Founded 1972)

(1986) HKSE merges with other exchanges and retain the name but also presented as Stock Exchange of Hong Kong

(2000) Hong Kong Exchanges and Clearing becomes the holding company for Hong Kong Stock Exchange

Hong Kong Futures Exchange Ltd(Founded 1976)

Hong Kong Securities Clearing Company Ltd(Founded 1989)

Trading hours

Russian President Dmitry Medvedev with exchange Chairman Ronald Arculli during a visit to Hong Kong on 17 April 2011.

The trading day consists of:

A pre-opening auction session from 9:00 am to 9:30 am. The opening price of a security is [5] reported shortly after 9:20 am. A morning continuous trading session from 09:30 am to 12:00 pm
[5]

An extended morning session from 12:00 noon to 1:00 pm, also referred to as the lunch [5][6] break. Continuous trading proceeds in specifically-designated securities (currently two ETFs, 4362 and 4363). Trading in other securities is not possible. However, previously-placed orders in [7] any securities can be cancelled from 1:00 pm onwards. An afternoon continuous trading session from 1:00 pm to 4:00 pm
[5]

London Stock Exchange

The London Stock Exchange is the most important exchange in Europe and one of the largest in the world. It lists over 3,000 companies and with 350 of the companies coming from 50 different countries, the LSE is the most international of all exchanges.

The London Stock Exchange is comprised of two different stock markets: the Main Market and the Alternative Investment Market (AIM). The Main Market is solely for established companies with high performance, and the listing requirements are strict. Approximately 1,800 of the LSE's company listings trade on the Main Market, and the total market capitalization is over 3,500 billion. The Alternative Investment Market on the other hand trades small-caps, or new enterprises with high growth potential. Over 1,060 companies list on this market, with a total capitalization of 37 billion. The LSE is completely electronic, but different shares are traded on different systems. Highly liquid shares are traded using the SETS automated system on an order driven basis. This means that when a buy and sell price match, an order is automatically executed. For securities that trade less regularly, the London Stock Exchange implements the SEAQ system, where market makers keep the shares liquid. These market makers are required to hold shares of a specific company and set the bid and ask prices, ensuring that there is always a market for the stock. The LSE also has a new and growing exchange for equity derivatives called EDX London, created in 2003. In 2004, EDX traded an average of 382,599 contracts per day. Its aim is to become the leading derivatives market in the world.

"Big Bang"
The biggest happening of the 1980s was the sudden deregulation of the financial markets in the UK in 1986. The phrase Big Bang was coined to describe measures including abolition of fixed commission charges and of the distinction between stockjobbers and stockbrokers on the London Stock Exchange, as well as change from an open-outcry to electronic, screen-based trading. In 1995 The Exchange launched the Alternative Investment Market, the AIM, to allow growing companies to expand to international markets. Two years later the Electronic Trading Service (SETS) was launched, bringing greater speed and efficiency to the market. Following this, the CREST settlement service was also launched. On the year of the new millennium, 2000, the Exchange's shareholders voted to become a public limited company: London Stock Exchange plc. The LSE also transferred its role as UK Listing Authority to the Financial Services Authority (FSA- UKLA) EDX London, a new international equity derivatives business, was created in 2003 in partnership with OM Group. The Exchange also acquired Proquote Limited, a new generation supplier of real-time market data and trading systems. The old Stock Exchange Tower became largely redundant with the advent of the Big Bang, which deregulated many of the Stock Exchange's activities as it enabled an increased use of computerised systems that allowed dealing rooms to take precedence over face to face trading. Thus, in 2004, the House moved to a brand new headquarters in Paternoster Square, close to St Paul's Cathedral. In 2007 The London Stock Exchange merged with Borsa Italiana, creating the London Stock Exchange Group (LSEG). The Group operates out of the Stock Exchange's headquarters in Paternoster Square.

Opening times
Normal trading sessions on the main orderbook (SETS) are from 08:00 to 16:30 every day of the week except Saturdays, Sundays and holidays declared by the Exchange in advance. The detailed schedule is as follows: 1. Trade Reporting 07:15 - 07:50 2. Opening Auction 07:50 - 08:00 3. Continuous Trading 08:00 - 16:20 4. Closing Auction 16:30 - 16:35 5. Order Maintenance 16:35 - 17:00 6. Trade Reporting Only 17:00 - 17:15 Holidays are currently: New Year's Day, Easter, May Bank Holiday, Spring Bank Holiday, Summer Bank Holiday, and Christmas Day. Note that UK Time is Greenwich Mean Time (GMT), with daylightsaving time observed.

M&A activity
[edit]Borsa

Italiana

On the 23rd June 2007, the London Stock Exchange announced that it had agreed on the terms of a recommended offer to the shareholders of the Borsa Italiana S.p.A. The merger of the two companies created a leading diversified exchange group in Europe. The combined group was named the London Stock Exchange Group, but still remained two separate legal and regulatory entities. One of the longterm strategies of the joint company is to expand Borsa Italianas efficient clearing services to other European markets. [edit]MTS In 2007, after Borsa Italiana announced its call option exercise right to acquire full control of MBE Holdings, the combined Group would now control Mercato del Titoli di Stato, or MTS. This merger of Borsa Italiana and MTS with the London Stock Exchanges existing bond listing business, enhanced the range of covered European fixed income markets. [edit]Turquoise The London Stock Exchange acquired Turquoise (TQ), a Pan-European MTF, in 2009 and since coupling with MillenniumITs software, it currently offers the fastest latency bar none in Europe. Currently the speed of latency on Turquoise (as measured at the end of August 2011) is 97 micro seconds on average for 99.9% of trades. Initially founded by a consortium of nine banks, it is now majority owned by the London Stock Exchange Group. Currently shareholders include twelve of the leading Investment Banks. Turquoise operates a Maker-taker fee scheme, 0.30 basis points for Aggressive traders and 0.20 rebates for Passive traders, providing liquidity. The market share of Turquoise as an MTF has doubled over the past twelve months, from 3% to 6%. There are currently 2000 securities, across

nineteen countries on Turquoise. Unlike Broker-Dealer Crossing Networks, TQ does not discriminate as to who can trade on their platform. [edit]NASDAQ

bids

In December 2005, the London Stock Exchange rejected a 1.6 billion takeover offer from Macquarie Bank. The London Stock Exchange described the offer as "derisory", a sentiment echoed by shareholders in the Exchange. Shortly after Macquarie withdrew its offer, the LSE received an unsolicited approach from NASDAQ valuing the company at 2.4 billion. This too it rejected. NASDAQ later pulled its bid, and less than two weeks later on 11 April 2006, struck a deal with LSE's largest shareholder, Ameriprise Financial's Threadneedle Asset Management unit, to acquire all of that firm's [14] stake, consisting of 35.4 million shares, at 11.75 per share. NASDAQ also purchased 2.69 million additional shares, resulting in a total stake of 15%. While the seller of those shares was undisclosed, [15] it occurred simultaneously with a sale by Scottish Widows of 2.69 million shares. The move was seen as an effort to force LSE to the negotiating table, as well as to limit the Exchange's strategic [16] flexibility. Subsequent purchases increased NASDAQ's stake to 25.1%, holding off competing bids for several [17][18][19] months. United Kingdom financial rules required that NASDAQ wait for a period of time before renewing its effort. On 20 November 2006, within a month or two of the expiration of this period, NASDAQ increased its stake to 28.75% and launched a hostile offer at the minimum permitted bid of 12.43 per share, which was the highest NASDAQ had paid on the open market for its existing [20] shares. The LSE immediately rejected this bid, stating that it "substantially undervalues" the [21] company. NASDAQ revised its offer (characterized as an "unsolicited" bid, rather than a "hostile takeover attempt") on 12 December 2006, indicating that it would be able to complete the deal with 50% (plus one share) of LSE's stock, rather than the 90% it had been seeking. The U.S. exchange did not, however, raise its bid. Many hedge funds had accumulated large positions within the LSE, and many managers of those funds, as well as Furse, indicated that the bid was still not satisfactory. NASDAQ's bid was made more difficult because it had described its offer as "final", which, under British bidding rules, restricted their ability to raise its offer except under certain circumstances. In the end, NASDAQ's offer was roundly rejected by LSE shareholders. Having received acceptances of only 0.41% of rest of the register by the deadline on 10 February 2007, Nasdaq's offer duly [22] lapsed. Responding to the news, Chris Gibson-Smith, the LSE's chairman, said: "The Exchanges strategy has produced outstanding results for shareholders by facilitating a structural shift in volume growth in an increasingly international market at the centre of the worlds equity flows. The Exchange intends to build on its exceptionally valuable brand by progressing various competitive, collaborative and strategic opportunities, thereby reinforcing its uniquely powerful position in a fast evolving global [23] sector." On 20 August 2007, NASDAQ announced that it was abandoning its plan to take over the LSE and subsequently look for options to divest its 31% (61.3 million shares) shareholding in the company in [24] light of its failed takeover attempt. In September 2007, NASDAQ agreed to sell the majority of its [25] shares to Borse Dubai, leaving the United Arab Emirates-based exchange with 28% of the LSE. [edit]Proposed

merger with TMX Group

On 9th February 2011, the London Stock Exchange Group announced that they had agreed to merge with the Toronto-based TMX Group, the owners of the Toronto Stock Exchange, creating a combined [26] entity with a market capitalization of listed companies equal to 3.7 trillion. Xavier Rolet, who

currently is CEO of the LSE Group, would have head the new enlarged company, while TMX Chief Executive Thomas Kloet would have become the new firm president. The London Stock Exchange however announced it was terminating the merger with TMX on 29th June 2011 citing that "LSEG and TMX Group believe that the merger is highly unlikely to achieve the required two-thirds majority [27] approval at the TMX Group shareholder meeting" . Even though the LSE obtained the necessary support from its shareholders, it failed to obtain the required support from TMX's shareholders.