An ASIC report notes the boom in demand for this asset, saying it heightens the need for “better-quality data” about the size of this sector where estimates range between $1.8 billion and $188 billion.
CPA Australia has weighed into the debate about the cost to oversee the industry, adding its voice to those who argue the fee structure favours the larger funds.
Not with a bang but a whimper: NYSE is sold
Perhaps this is a fitting way for the West to end this calendar year: The New York Stock Exchange has been sold!
According to the ‘New York Times’s’ Dealbook news service:
“The $US8.2 billion deal for the New York Stock Exchange showed how the power base in finance has shifted. Once seen as the cradle of American capitalism, the stock exchange has suffered from declining trading volumes and razor-thin margins. Meanwhile, its acquirer, the Atlanta-based Intercontinental Exchange, or ICE, has bolstered its position as trading in commodities and derivatives has become much more lucrative than trading in the shares of companies.
“The Dodd-Frank financial regulatory overhaul may be a plus for the combined company. The law, which forces Wall Street banks to push derivatives trades into clearinghouses and regulated exchanges, is ultimately expected to cement ICE’s business model into the regulatory code.
“Jeffrey C. Sprecher, chief executive of ICE, said: ‘Financial reform is imposing that vision on many markets through a rule-making process.’
“Duncan Niederauer, the chief executive of the stock exchange’s parent NYSE Euronext, acknowledged that the deal was ‘not a merger of equals.’ When Niederauer was approached by Sprecher of ICE, reaching a deal took only three months. The two companies found themselves in alignment on several issues. Sprecher indicated that he was willing to maintain two headquarters, ICE’s home in Atlanta and the Big Board’s center in New York City.” 

But even that arrangement shows how the NYSE.’s clout has declined over the years. What was once “the temple of commerce” is now “not much more than a television”.
