Wll Street appears to be moving ever closer to a single, or tightly controlled global market as news yesterday came out that the New York Stock Exchange (NYSE) is in talks to merge with the German Borse exchange.
This merger would be one of final lynchpins in creating a single global market, where Americans could buy stocks in the US, securities in France, and derivatives in Germany.
In an article yesterday from the Deal Book section of the New York Times, this merger would create the world's largest financial market, with access to over 14 countries in Europe and at home under one roof.
The exchange, facing pressure from electronic upstarts that have taken business away from it, said on Wednesday that it was in advanced talks on a merger with the operator of the Frankfurt Stock Exchange. A deal would create the world’s largest financial market, with a presence in 14 European countries as well as the United States.
Under the terms being negotiated, the New York Stock Exchange — which began in 1792 when brokers gathered beneath a buttonwood tree in Lower Manhattan to trade five securities of the new nation — would still have a headquarters in Manhattan. But the Deutsche Börse would own as much as 60 percent of the new company, which would be incorporated in the Netherlands.
Very quickly, economic sovereignty is going by way of the dodo. World markets already control commodity trading which determines food prices for most countries, and currency exchange trading runs almost 24/7.
The banking interests for a long time have sought to bring all financial and economic power into a centralized, global center. NAFTA, GATT, and the IMF were the foundations for this, and this merger of stock exchanges would simply provide one of the last pieces necessary to accomplish a global financial order.