The Dublin stock exchange should not fear the giant $27 trillion dollar market created by the merger between the New York Stock Exchange and the new pan-European exchange, Euronext, New York Stock Exchange's CEO, John Thain, has told The Irish Times.
Mr Thain said he believed that Dublin and other smaller European exchanges can still be invaluable in raising finance for companies, as well as providing a local investment market.
Mr Thain also said that he believed that if Dublin and other European markets do not join the NYSE-Euronext merger, they may form part of other global stock exchanges that will follow in its wake.
Speaking at New York's Foreign Press Center to promote the merger, the first of its kind in the world, Mr Thain admitted that the New York Stock Exchange has not been able to trade as quickly as many traders would like and said that he wanted the NYSE Euronext deal to bring on a quicker type of high-tech global trading.
"Overall, exchanges have really lagged behind the developments in the markets and developments in other financial institutions," he said.
Mr Thain said he did not believe that Dublin, London and other European stock markets will not be swamped by the huge competition presented by the NYSE-Euronext market but said NYSE Euronext was still looking at other European stock exchanges that might want to join.
"I believe, in the future, there will be a handful of large global market places and lots of smaller, local markets.
Most countries have an exchange and an airline and a flag and I think it's important for the local markets to provide financing for local companies and also provide investment opportunities for local investors.
"That's not going to go away," he said.
Asked how Dublin could compete with a $27 trillion trading market, Mr Thain said that the Dublin exchange will still be invaluable in raising local investment money.
He said the new carbon-trading market, the Chicago Climate Exchange, was a good example of emerging global markets.
"It has a very large market value. The company is a little hard to measure as it is dealing in futures contracts, not stock, but I think there will be a handful of global exchanges. I think we'll be the first one, but certainly not the only one," he said.
Mr Thain confirmed that NYSE Euronext will be a US holding company, with international headquarters in Paris and Amsterdam, with London as headquarters for its derivatives market.
Euronext was formed through the integration of the Paris, Amsterdam, Brussels and Lisbon under one management.
