Question

In 2007, the New York Stock Exchange was merged with _______ to form the first global equities exchange.

• A. Chi-X
• B. Xetra
• C. Eurex
• D. Euronext

Hint:

Think of the exchange group formed in 2000 from the Paris, Amsterdam and Brussels bourses.

Answer 1

The Correct Option is D

This question is about one of the biggest events in global stock exchange history, the creation of the first transatlantic stock exchange group.

1. Chi-X: Chi-X was a European alternative trading platform that competed with traditional exchanges on trading costs and speed. It was never merged with the New York Stock Exchange, so this option is wrong.
2. Xetra: Xetra is the electronic trading system run by Deutsche Borse, the German stock exchange operator. It has no connection with the NYSE merger of 2007, so this is incorrect.
3. Eurex: Eurex is a derivatives exchange, also operated jointly by Deutsche Borse and the Swiss exchange group. It deals in futures and options, not the entity that merged with NYSE.
4. Euronext: Euronext was formed in the year 2000 by merging the Amsterdam, Brussels and Paris exchanges, and later added the Lisbon exchange and the London derivatives market. In April 2007, NYSE Group and Euronext combined to form NYSE Euronext, the first exchange group to link the American and European equity markets under one roof.

The correct option is Euronext. The merger created NYSE Euronext, with operations spanning New York, Amsterdam, Brussels, Lisbon and Paris.

Let's summarize:

• NYSE Euronext, formed in 2007, was the first group to combine a major American exchange with major European exchanges.
• Xetra and Eurex belong to the German and Swiss Deutsche Borse family and were not part of this deal.

So, the New York Stock Exchange merged with Euronext in 2007 to create the first global equities exchange.