No matter the outcome of the hostile bid, OM has showed that the consolidation process is an open affair. It is no longer the chasse-gard e of the large financial centres. As exchanges now are private commercial companies, market forces will determine the outcome. A merger has to produce more immediate value for the shareholders as well. This may also affect the regulation of exchanges.
Securities regulation is currently under review in Europe.
OM s bid reflect a different vision of how consolidation could take place. Instead of a process with the ultimate aim of only one super-exchange, OM envisages a much more efficient LSE competing with other European exchanges. Ideally, this would be accompanied with consolidating in the clearing and settlement area. Despite its strengths, OM will find it hard to draw a hostile bid to a successful conclusion. The LSE s main owners are banks and stockbrokers.