The (probably) impending merger of NYSE and Euronext has gotten a lot of adoring attention in the press, although the supposed benefits of the merger strike us as a bit mysterious. Mostly, it looks like a defensive move by the NYSE afraid of being eclipsed by a NASDAQ-London Stock Exchange combination.
Gary Weiss quotes disapprovingly from the New York Times editorial on the merger.
Most important to investors in the exchange companies themselves is the $375 million in potential savings that NYSE Group predicts for a combined entity.
If a combined company can pass the fruits of those savings on to the average investor — not to mention added ease in buying shares of foreign companies — we're all for it.
He then takes a look at exactly what the "average investor" can expect to see from the deal.
OK. If the company passes on the savings to the "average investor," who trades maybe three or four times a month, if he's very busy, that would mean savings of ..... goodness. My calculator can't quite count that low. He might be able to buy one more ham sandwich a week, maybe?
Euronext as Euronothing [Garry Weiss]