World Stock Market Rollup

It’s official. The New York Stock Exchange is buying Euronext, Nasdaq is buying the London Stock Exchange one way or another, and the world is becoming a smaller place.

A Rollup of Rollups

Drilling down, the Euronext is itself a rollup of the Amsterdam Stock Exchange, Brussels Stock Exchange, and Paris Bourse – a three-way EU merger completed on September 22, 2000. Upon creation, the Euronext then acquired the London International Financial Futures and Options Exchange (LIFFE) in 2001 and the Portuguese Stock Exchange (BVLP) in 2002. Euronext is currently in the process of acquiring the Italian Stock Exchange, Borsa Italiana.

The creation of NYSE Euronext marks the world’s first international stock exchange. And it’s certainly a harbinger of things to come. In the digital world, it’s easier than ever for investors to diversify their investments across global markets. And with the NYSE merger, it’s going to get even easier. I imagine European stocks will someday be purchased on the NYSE without ADR’s. And sector indices will be expanded to include overseas companies. Imagine your industry ETF’s diversified across two continents. Or the S&P 500 superceded by a Trans-Atlantic index…

Where ValueWiki Fits In

We’re trying to anticipate this brave new world by building a site where a Canadian can research stocks in India, while a Singaporean can research stocks in Italy. Wikipedia has chosen to fragment their wiki into dozens of languages. This means an article I read about France is probably written by Americans, not the French. For the time being, ValueWiki will stick to English as a common language. But is this the best choice? Does it satisfy the greatest number of people? As always, we’re curious to hear your opinions.

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3 Responses to World Stock Market Rollup

  1. khartand says:

    Interesting thought about market consolidation. I think complete international stock market integration will happen eventually, but probably not as fast as most people think. I remember that many foreign issues in NASDAQ/NYSE were pulled out a few years ago due to US regulation tightening (SOX, etc.).

    regarding ValueWiki, I think it’s English is the best way to go at this point. Since it is the de facto language for international trade. Most major companies in non-English speaking countries also publishes their reports in English.

    However, localization has some advantages too. ValueWiki is most valuable for the general investing public (not the big institutional investors with unlimited resources and information flow). While the most educated people anywhere in the world Unfortunately most people in non-english speaking world cannot or don’t have the confidence to speak/write English in public forum, so the result is that the French company articles will still be written in English by British/American, while there will be limited contributions from non-English speaking countries.

    In conclusion English ValueWiki will satisfy the most people but not all people. Well, in my ideal world, someone should have commercialized a universal translator like the one in Star trek by now.

  2. […] see this as a continuing sign of the world stock market rollup. The ever-increasing stock trading between nations underscores the need for a global investor […]

  3. Lonnie Bryer says:

    Hello can I reference some of the insight here in this entry if I provide a link back to your site?

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