Dialog with Reto Francioni
ROBERT SCHWARTZ: I have known Reto Francioni and have worked with him over the years. He is a good friend. I very much appreciate his having traveled from Frankfurt to be with us today. That said, I will now ask him some questions that are designed to make him feel uncomfortable (laughter).
Let us start at the beginning. What in your opinion are the key drivers of consolidation? Why all of a sudden are we hearing all these merger talks that involve Deutsche Börse, Euronext and the London Stock Exchange?
RETO FRANCIONI: The first key element is that all three of these major exchange organizations are listed. This simple fact is a necessary pre-condition for these mergers. In Europe and elsewhere, a stock exchange is not just a stock exchange anymore. It is also a public company. Listed stock exchanges have many constituencies: there is the legislative government, regulatory authorities, customers, shareholders, and the very proud management running the companies. As you can imagine, it...