Derailed by politics

摘要

When Australia's deputy prime minister and treasurer Wayne Swan announced that Singapore Stock Exchange's (SGX) planned partnership with its Sydney-based counterpart would be blocked on grounds of national interest, it fuelled fears that protectionism was making an unwelcome appearance on the global exchange landscape. Many worried too that it would set a dangerous precedent for other bourses attempting to forge international partnerships. Mr Swan said he viewed the bid as a takeover rather than the promised partnership and denied the decision to obstruct it was influenced by anything other than the merits of SGX's bid. The Australian political landscape is delicately balanced, however. The deal required approval from the (hung) parliament, and would most likely have embroiled the minority Labor Party government in an unpopular battle with Greens, Nationals and independent members of parliament. Senator Bob Brown, leader of the Greens, had already voiced his opposition to the deal, arguing that the exchange should remain in Australian ownership, and criticising Singapore's human rights record. Meanwhile, 15,500 kilometres away in Toronto, local hostility to the London Stock Exchange (LSE) Group's bid for TMX Group, which owns the Toronto Stock Exchange, had also become apparent. And Deutsche Borse's play for NYSE Euronext met with resistance from those concerned about the consequences of an icon of US capitalism ending up in German hands. For those attempting to negotiate deals, the fear is that partnerships which make economic sense are derailed by populist legislation. "There's a lot of politicking going on and my worry is that regulation is introduced based on political rhetoric, not fairness," says Alasdair Haynes, CEO of European trading venue ChiX, itself currently the subject of takeover bid by a smaller competitor, BATS Europe. The result of these proposed deals could have ramifications for bourses across the globe. A spokesperson for the Tokyo exchange notes that consolidation is begetting consolidation among trading venues at present, and predicts that if the mergers currently under consideration actually take place, it will greatly ease the passage of future tie-ups.