Nasdaq close to a deal

The Nasdaq Stock Market expects its $4.5 billion deal to acquire Nordic and Baltic stock exchange OMX through a complex tie-up with Borse Dubai to close on Wednesday.

Last year, Borse Dubai, the holding company for Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX), joined Nasdaq in a bid to buy OMX.  In exchange for Nasdaq's merging with OMX, Dubai is expected to gain Nasdaq's stake in the London Stock Exchange Group (LSE) and a 19.9% stake in Nasdaq itself -- though only a 5% voting stake. 

This acquisition follows two trends.  One is the growing influence of bourses outside the traditional financial centres -- London and New York -- as Dubai stands to profit from the deal.  Nasdaq is expected to invest in DIFX.  The other trend is moves toward widespread consolidation of derivatives trading:  last year the Chicago Mercantile Exchange purchased the Chicago Board of Trade for 12 billion dollars, creating the CME group -- the world's largest derivatives exchange, dominating corn, grain, and gold trading.  NYSE Euronext in January bought the American Stock Exchange.  The CME Group on January 28 announced it had entered an exclusive negotiating period to acquire energy and metals exchange Nymex; if successful, the merger would solidify CME's position as the world's most important futures market.

This consolidation of exchanges may draw US Justice Department attention over antitrust concerns, even as it raises important regulatory questions.