The integration of the financial marketplaces: the London and Italian Exchanges. A sign of the times

Inquiry and analysis of the efficiency of the integration of the financial markets
Giovanni Bottazzi Member of the management of Borsa Italiana from 1974 to 1994, author of various reports on technical-financial topics, member of Aiaf, university lecturer.
Malcolm Galloway Duncan Head of International Relations at Borsa Italiana from 1972 to 1994, advisor to the European Commission (DGXV) from 1981 to 1984, journalist and author of various financial publications, ex entrepreneur in the field of financial marketing and promotion and member of Aiaf.

The integration of the financial marketplaces: the London and Italian Exchanges. A sign of the times

By means of this inquiry, we wish to contribute to AIAF’s commitment, as specified in its Statutes (art. 2, point 1,b) which reads “contribute to the improvement of the securities market”, that is in the widest sense and, we would add, in due consideration of its profound transformation, especially in the field of market transparency and efficiency, already under way.

The following reflections are based on what is probably a unique privileged view of the market of the above authors, professionally involved for many years and employed by the Stock Exchange management board intent on the promotion of the same marketplace and on the accuracy and efficiency of stockmarket prices and returns in a transparent and significant manner. The recent merger of Borsa Italiana and the London Stock Exchange, one of the most recent cases of international stock exchange amalgamations, seemed a most appropriate occasion to carry out the present analysis. It would appear logical to consider the factors which are capable of indicating if and how such merger may lead to a confluence of the two marketplaces and improve the quality of the markets in relation to transparency and efficiency on the subject of information, trading and capital allocation.