This definitely seems like a good idea. It’s a big issue that most promising European companies go to the US for their listings in search for access to capital.
Seems to me that this would already have been the obvious move after Brexit.
However I feel like this is doomed to fail for the same reason as many other issues. Clashing interests of different member states within the EU.
I assume this would still need to have a primary location somewhere, so Frankfurt or Paris would be the most likely location to build this up. Merz bringing this up presumably would like it to be Frankfurt, but I very much doubt that Macron would feel similarly.
Proximity to the servers matters a lot for high frequency trading algorithms, to the point the big hft-using banks acquire space in the building next door to the NYSE. Milliseconds are an eternity to these guys.
There needs to be a single source of truth so I’m assuming the servers are going to be in one location (with backups of course, but the primary system would have a singular location). Otherwise you could get discrepancies.
This could then become a political issue - commercial real estate in the city where it will be built is going to shoot up in value. Which country do the extra euros flow into?
There are problems, but they have solutions. Honestly, the stock exchange is not more important than the ECB, for example. Paris has a lot of European institutions already as well. Without Brexit, London would have been the obvious choice. In the end, it doesn’t matter. Merz having a good idea is a rare thing, I hope they make it happen.
This definitely seems like a good idea. It’s a big issue that most promising European companies go to the US for their listings in search for access to capital.
Seems to me that this would already have been the obvious move after Brexit.
However I feel like this is doomed to fail for the same reason as many other issues. Clashing interests of different member states within the EU. I assume this would still need to have a primary location somewhere, so Frankfurt or Paris would be the most likely location to build this up. Merz bringing this up presumably would like it to be Frankfurt, but I very much doubt that Macron would feel similarly.
Does a stock exchange still have to be tied to a single physical location in the digital era? Perhaps it can be in both cities
Proximity to the servers matters a lot for high frequency trading algorithms, to the point the big hft-using banks acquire space in the building next door to the NYSE. Milliseconds are an eternity to these guys.
There needs to be a single source of truth so I’m assuming the servers are going to be in one location (with backups of course, but the primary system would have a singular location). Otherwise you could get discrepancies.
This could then become a political issue - commercial real estate in the city where it will be built is going to shoot up in value. Which country do the extra euros flow into?
There are problems, but they have solutions. Honestly, the stock exchange is not more important than the ECB, for example. Paris has a lot of European institutions already as well. Without Brexit, London would have been the obvious choice. In the end, it doesn’t matter. Merz having a good idea is a rare thing, I hope they make it happen.