Capital markets in the world today are rather volatile, no thanks to the subdued global economic prospects affecting investor sentiments. Following the recent proposed merger of the Deutsche Boerse with the London Stock Exchange, we take a look at the possibility of consolidation of stock exchanges, the benefits and costs, and how capital market rules in countries play a role in an M&A of stock exchanges. We also explore how competition could perhaps spur established exchanges to expand to other markets.

This is a report by Wei Lynn.