"1995 was a very successful year for the Amsterdam Stock exchange"...reported Baron Boudewin van Ittersum in his Annual Report . "The new trading system got off to a very good start and the basis was laid for a fundamental re-structuring of the Bourse organisation in anticipation of further European liberalisation and the arrival of the Euro...." "The outstanding performance of the Amsterdam Exchanges NV in recent years has attracted international attention. Stimulated not only by a positive development of the economy and business sector but also by a successful adjustment policy in respect of the Bourse organisation and its members, the Amsterdam Exchanges NV now ranks among the top five Stock Exchange in Europe and the top ten in the world."
The report goes on to say "...Medium and smaller sized stock exchanges will have to offer excellent trading and settlement facilities at competitive prices if they are to survive as independent bourses in the future." "...The use of new cross border technical facilities will enable smaller exchanges to react effectively to competition and they will also be able to develop a role outside their domestic markets....While there are opportunities for the future, it is likely that after a period of increasing market fragmentation due to the emergence of the new technical facilities, a period of consolidation will occur."
"Whether this will lead to a joint structure that is in the interest of the European market as a whole and create a level playing field for the large and small bourses remains to be seen. For the time being it may be a question of the survival of the fittest."
Because of the changes the Amsterdam Exchanges NV has been making in response to the new international trading rules and other EU directives on investment services ( ISD) and capital adequacy (CAD), Amsterdam is certain to be a survivor.
"Intermediaries may now become "remote" members of foreign bourses without having an office in the country concerned. Under the influences of these developments, bourses and the new trading facilities - especially those in the same time zone - are increasingly becoming one another's rival in a struggle to win the favour of brokers and buyers and sellers of capital."
"The movement of capital is less and less impeded by traditional barriers and flow to those bourses which offer the best value for money."
"But the competition for business in real international stocks is not restricted to bourses in the same time zone, says Baron van Ittersum in his analysis of the 21st century" The New York Stock Exchange on Wall Street is increasingly promoting itself as the global securities market for large international companies, and, because of the disappearance of restrictions on applications for a listing in New York, this may mean a new challenge.
In the expected struggle of the three time zones (Europe, America and the Far East) to attract the savings for individual economic development, Europe will have to offer an efficient, less fragmented capital market to investors.
So far this appears to be an arduous process."
For further information contact:
Thom Hoedemakers Director, Corporate Affairs The Amsterdam Exchanges NV Tel: +31 20 523 4014 Paddy Manning St James Corporate Communications Tel: 0171 436 4101
BACKGROUND NOTE
The Amsterdam Exchanges NV broke record after record in 1985. The leading Amsterdam EOE Index rose by 17% over the whole year The Amsterdam MidKap-Index increased by 13.4%. A Total turnover of NLG 1362 billion was realised (+17%). Share turnover increased by no less than 28%. Because of this performance, by the end of 1995, Amsterdam once again joined the top ten bourses of the world and was the fifth in Europe after Zurich, Dublin, London and Stockholm.
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