The merger of new york Stock Exchange (NYSE) and Euronext gives new york Stock Exchange, the most famous stock exchange in the United States, the real ability to trade derivatives. In Chicago, with the merger of Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT) to form Chicago Mercantile Exchange Group Co., Ltd., a $25 billion super derivatives exchange was born.

The birth of these Big Macs has stirred up the original pattern of global exchanges, prompting investors to invest in different regions. For example, before the wave of integration came, who would have thought that the Winnipeg Grain Exchange (WGE), now the Winnipeg Commodity Exchange (WCE), would have such exciting investment opportunities? Now that WCE has become part of the Intercontinental Exchange, investors who are looking forward to merging and buying shares in Winnipeg Grain Exchange now look insightful.

Most industry analysts believe that the current wave of integration still has a long way to go, and other parts of the world are catching up with North America and Western Europe. In fact, many analysts who know the derivatives exchange industry believe that the prosperity of this industry is an opportunity for all investors.

Christopher Christopher Allen, an exchange industry analyst at BAS, an American bank securities company, believes that there are many factors driving the wave of consolidation: first, the scale advantage. The typical exchange cost structure is that fixed costs account for the vast majority. Therefore, the income from new trading volume is almost linear, which is a great motivation to acquire another exchange and integrate its products on the same technology platform. Second, product diversification. The growth rate of derivatives trading is much faster than that of stock trading, so simple stock exchanges are eager to buy a derivatives exchange in order to share the feast of rapid growth of derivatives trading.

This is one of the reasons why NYSE acquired Euronext in 2006. Euronext is the parent company of the second largest derivatives exchange in Europe. Similarly, this is why Nasdaq recently intends to acquire the Philadelphia Stock Exchange (PSE), because PSE is the parent company of the third largest options exchange in the United States. In addition, he also listed several other driving factors of exchange integration: the attraction of more advanced trading technology; The desire to own a clearing house; There is the value of a collaborator in another part of the world. These driving factors will continue to play a decisive role in the future wave of exchange integration.