Us Stock Exchange Industry

The stock exchange plays a vital role in the economic well being of a country and a well run stock exchange is the bedrock of most prosperous countries in the world. The stock exchanges in US are highly competitive and face enormous pressures on both cost and revenue fronts. On the costs side, the US stock exchanges face increasing expenses for investment in advanced technology for trading, exchange and communications systems. On the revenue side, the threat of a domestic economic recession is resulting in weakened trade volumes and reduced overall revenue and profitability.

However the US stock exchange industry is facing up to this challenge with a multi-pronged strategy of extensive consolidation primarily based on mergers and acquisitions, broadened product/service offerings and implementation of new technology to increase trading efficiencies. Combined, this strategy is expanding the reach of the major US stock exchanges to various global markets while efficiently increasing the number of clients and trade volumes and spreading technology development costs over larger trade volumes.

This report presents the results of a study of US stock exchange industry in terms of Porter’s five forces of competition and the following key success factors:

(i) Well-developed internal processes

(ii) Access to latest and most improved