LSE-Deutsche Boerse Merger

Water Cooler
#1

Is this like a normal merger of two companies?

What are an Exchange’s assets then? How do they make money? I am thinking commissions and bid/ask spreads but aren’t these absorbed by independent brokers and dealers? And the fact that the resulting company will be a public company floated on “an exchange” reminds me of a snake eating its tail.

#2

Yes. Exchanges charge fees to participants. Their assets are primarily the technology that makes it all work. Look at the financials of the TMX Group if you want a clear picture of the business (publicly traded exchange).