NASDAQ consolidation Continues... NASDAQ to purchase the Boston Stock Exchange

Founded in 1834, the Boston Stock Exchange (BSE) is the third oldest exchange in the US. Well..not anymore, according to the breaking news release from the BSE.

" BOSTON STOCK EXCHANGE AND ITS KEY ASSETS TO BE ACQUIRED BY NASDAQ" A Boston institution becomes part of nation's largest equities exchange

Included in the sale is the Boston Stock Exchange and its key assests: The BSE's holding company (BSE Group), the Boston Equities Exchange (BeX), Boston Stock Exchange Clearing Corporation (BSECC), and BSE's regulatory authority over the Boston Options Exchange (BOXR). NASDAQ's acquistion of the BSE Group is valued at approximately $61 million.

According to Michael J. Curran, chairman of chief executive officer,

"Though it is a sad moment for the BSE and its 173 year heritage of innovation and service to the US markets, we are not immune to the global consolidation that is occurring in this industry...We believe our sale to NASDAQ is a favorable outcome for our seat holders and we are proud to become part of the NASDAQ Stock Market and its own tradition of innovation and service."

NASDAQ's response via their press release

"NASDAQ is very focused on meeting the needs of its customers. This transaction provides added liquidity, new trading choices and an enhanced competitive market environment. NASDAQ's acquisition of the BSE will expand NASDAQ's execution offerings, and deliver user and investor benefits consistent with our Brut and INET acquisitions...We believe a second exchange license in both equities, and in the future options, will provide market structure flexibility as we continue to deliver on our mission of being the number one trading platform in the transactions business." Bob Greifeld, President and Chief Executive Officer of NASDAQ

"This deal will allow our customers to better execute their trading strategies. From critical trading functionality, to crossing products, and risk management offerings, NASDAQ's second quote in NASDAQ, NYSE and AMEX-listed securities will arm our diverse customer base with more choices and competitive pricing options. Additionally, we are optimistic that the clearing business will provide valuable benefits for both NASDAQ and our customers over time." Chris Concannon, NASDAQ Executive Vice President of Transaction Services

This is amazing. As our financial system is crumbling around US due to the "sub prime" farce, the big players are taking advantage of the system. You'll see..after all the chaos settles, our economic markets will have been completely consolidated.

"For traditional exchanges, there seems to be a bit of a landgrab at the moment -- to both protect and grow liquidity from the onslaught of new and merged competitors," said Cubillas Ding, an analyst at Celent.reuters 10/2

Take for instance, Sept 20th.

In minutes, NASDAQ and the state owned Borse Dubai (created 2 months ago) shocked everybody when they announced they would stop their months long bidding war for OMX. OMX is a Swedish/Finnish financial services company with an amazing highly desired integrated 'back end technology' which consolidates other money market 'exchanges'.

[OMX] in addition to owning and running exchanges in Sweden, Denmark, Finland, Iceland and the Baltic states, provides technology to about 60 exchanges worldwide, including the Australian Securities Exchange, Nordic power market Nordpool and the Singapore Exchange. khaleejtimes

In short, in the unique shares/cash trade. Dubai will acquire OMX..swap it to the NASDAQ..who in turn will repay Dubai with a 19.99 % share in the NASDAQ and NASDAQ's 28% share of the London Stock Exchange(LSE). In the deal NASDAQ will also gain a 33% share of Dubai's rebranded NASDAQ exchange. NASDAQ press release

Sept. 20th became much more complicated when Qatar via the Qatar Investment Authority (QIA) began wildly purchasing OMX shares and released a 'take no action' call to OMX shareholders on the NASDAQ/OMX announcment. Furthering the craziness, the QIA purchased the NASDAQ's remaining shares for sale in the LSE and went ahead and purchased another 20% stake in the LSE.

At the end of the day,

Qatar and Dubai are now the two biggest shareholders of the LSE, holding almost half of the world's third-largest stock exchange.reuters

The exchanges are consolidating, folks. Within weeks NASDAQ has gobbled up the competition and are realigning the exchange markets further intertwining the US, UK, Europe, and the Middle East together...most notably Dubai. Is this what we want?

Such alliances could become a way for corporations to get around some political sensitivities about outright takeovers of key national assets

This kind of exchange in the sense of swapping stakes, this reciprocal cross holding, is possibly a substitute for a straight merger because there would be political difficulties in a straight merger," said international securities expert John Coffee, a Columbia University Law School Professor.reuters

Borse Dubai and Nasdaq are plotting to create a transcontinental trading platform that will include the London Stock Exchange (LSE)

These deals were billed as the beginning of global exchange platform bridging North America, Europe and the Middle East and the inclusion of the LSE in such a structure would be a stunning achievement.UAE Interact

Does one really think that Greenspan would be on a "it's not my fault" tour if he didn't know the system was crumbling?...

Same Players. Different Scandal.

Ever Heard of Sheikh Mohammed bin Rashid Al Maktoum?

Ever heard of Sheikh Mohammed bin Rashid Al Maktoum? Me neither, but I'm studying up on him quick. Why, you ask?..well that's because soon he will be our new business partner. Yup..yours and mine. Every time we make a trade on the Nasdaq, he gets PAID.

How is that possible? Well, anything is possible if you're the Prime Minister and VP of the United Arab Emirates, as well as, the ruler of the city state, Dubai. So when the honorable Sheikh Mohammed bin Rashid Al Maktoum wants something..he gets it. Be it the world's largest aluminum smelter, the fastest growing airline company, ports, hotels, premiere soccer teams, cheap slave labor...the Sheikh can have it all.

When Sheikh Mohammed bin Rashid Al Maktoum decided he wanted a part of the western financial markets...he set his strategic plan to get it. On August 6, 2007 he created Borse Dubai, a holding company which essentially consolidated the all Dubai 'exchanges' under one 'holding' company. Now remember...The Sheikh owns this 'holding company' it is his. It is a STATE OWNED company.

Shortly after its' birth it began a bitter battle with NASDAQ for months over OMX. OMX is a Swedish/Finnish financial services company with an amazing highly desired integrated 'back end technology' which consolidates other money market 'exchanges'. Formed in 2003, OMX has become a financial leader which makes gaining OMX paramount.

[OMX] in addition to owning and running exchanges in Sweden, Denmark, Finland, Iceland and the Baltic states, provides technology to about 60 exchanges worldwide, including the Australian Securities Exchange, Nordic power market Nordpool and the Singapore Exchange. khaleejtimes

All that changed on Sept 20th when NASDAQ and Dubai announced they would partner up and attempt a highly controversial 'swap' trade. According to the NASDAQ Press release...

NASDAQ Increases Certainty of OMX Combination

Borse Dubai to become a 19.99 Per Cent Shareholder in NASDAQ;
Restricted to 5 Per Cent Voting Rights

Steps taken to allow DIFX to be rebranded with the NASDAQ Brand

NASDAQ to Become a Strategic Shareholder in DIFX

Borse Dubai Purchases a 28.0 Per Cent stake in LSE From NASDAQ
.....
Borse Dubai to become a 19.99% shareholder in NASDAQ (capped at
5 per cent voting rights)

NASDAQ will acquire all OMX shares to be purchased by Borse Dubai
in its offer for OMX

NASDAQ will become a strategic shareholder and the principal
commercial partner of Dubai International Financial Exchange
("DIFX")

DIFX will be re branded with the NASDAQ brand and licensed with market leading technology from the NASDAQ/OMX combination

Qatar, using the Qatar Investment Authority (QIA) freaked upon hearing of the 'agreement' and went on a spending spree. They purchased roughly a 10% share of OMX and sent out a release to shareholders of OMX to 'take no action' on the NASDAQ/Dubai 'agreement'. Then QIA went ahead and purchased a 20% stake in the London Stock Exchange and on Friday, bought the remaining 5.3 million shares of NASDAQ owned shares in the LSE.

Qatar and Dubai are now the two biggest shareholders of the LSE, holding almost half of the world's third-largest stock exchange.reuters

Even more interesting...Qatar will not disclose who they received the money from to buy the LSE shares but, the Khaleej Times reported sources said Citigroup will be buying more shares of OMX to help out the QIA.

Obviously there is some type of economic shifting, right. Don't believe me..Consider this article from the UAE Interact.

Borse Dubai and Nasdaq are plotting to create a transcontinental trading platform that will include the London Stock Exchange (LSE)

These deals were billed as the beginning of global exchange platform bridging North America, Europe and the Middle East and the inclusion of the LSE in such a structure would be a stunning achievement.

The LSE has successfully resisted several hostile takeover attempts in the past three years, including two from Nasdaq as well as offers from the Deutsche Borse, Australia's Macquarie Bank and Euronext, while the latter subsequently merged with the New York Stock Exchange (NYSE).

It seems so apparent. The following week was just as dramatic. Congress did nothing. The SEC..nothing. Homeland Security..nothing, as well. Once again..Are you kidding me? Geez, Nancy Pelosi blew it off stating,"It doesn't raise alarm bells...This is a marketplace issue.".

This is not a marketplace issue. This is a 'Homeland' Security issue. Dubai Borse is nothing more than a front company for the city state of Dubai. It blows my mind...This is far more important than the DP World fiasco in 2005. Same players...this time all of our policymakers are SLEEPING. or they are complicit.

This shady 'arrangement' is contingent on Dubai purchasing a 50% stake of all shares in OMX before the deal can progress. Not so easy when the QIA is gobbling up as much as they can. As of Sept 27th, Nasdaq and Dubai have attained 47.6% stake

Does this deal seem appropriate? I don't believe so. Dubai OWNS a plethora of ports and other cargo operations around the world. If Homeland Security, our policymakers, the media..et all, were anything but a fraud they would be investigating this deal with urgency. The DP World fiasco in 2005 was the first attempt at giving Dubai access to America's 'national interests'...the Nasdaq/Dubai arrangement is far worse. Far more dubious. Far more dangerous.

Such alliances could become a way for corporations to get around some political sensitivities about outright takeovers of key national assets

This kind of exchange in the sense of swapping stakes, this reciprocal cross holding, is possibly a substitute for a straight merger because there would be political difficulties in a straight merger," said international securities expert John Coffee, a Columbia University Law School Professor.

We're increasingly going to find that these petrol dollars will migrate not to treasuries but to capital assets in the United States ... and investments in money managers like Carlyle. reuters

according the Sen. Schumer, ""At this early stage this deal gives me pause... While I am and have been a big proponent of foreign investment in the United States, we must still be careful of the kinds of investments made in our critical infrastructure, financial exchanges, utilities, and other areas that are vital to the operation and security of our country...the Dubai exchange "is majority owned and controlled by the government of Dubai, which has previously been cited as a nexus of terror financing, money laundering, and a potential crossroads for shipping and trading for Iran in their quest for nuclear materials and technology." freeinternetpress

Same Players. Different Scandal.

Dubai: Rising out of the 'fog' to claim her role in international commerce

Dubai's skyline rising out of the 'fog' as global money markets realign.

How does a 'holding company' become a global financial powerhouse in 2 months?

It's easy if you're the Prime Minister and VP of the United Arab Emirates, as well as, the ruler of Dubai. Sheikh Mohammed bin Rashid Al Maktoum created Borse Dubai on August 6, 2007, which essentially consolidated the Dubai Financial Market (DFM) and the Dubai International Financial Exchange (DIFX).

The Dubai Government announced today that it will consolidate its holdings in Dubai Financial Market (DFM) and Dubai International Financial Exchange (DIFX) into a new holding company, Borse Dubai.

[Dubai's] move is in line with the Dubai Strategic Plan 2015, and demonstrates its commitment to further position Dubai as the leading capital market in the region dubaisharetalk

So, I guess that means that Dubai's 'exchange' markets are effectively under the control of the ruler, Sheikh Mohammed bin Rashid Al Maktoum, right?

Here is when it get interesting. Borse Dubai and NASDAQ immediately participated in a bidding war for a company named OMX. OMX is a Swedish/Finnish financial services company with an amazing highly desired integrated 'back end technology' which consolidates other money market 'exchanges'. Formed in 2003, OMX has become a financial leader which makes gaining OMX paramount.

[OMX] in addition to owning and running exchanges in Sweden, Denmark, Finland, Iceland and the Baltic states, provides technology to about 60 exchanges worldwide, including the Australian Securities Exchange, Nordic power market Nordpool and the Singapore Exchange. khaleejtimes

How did the bidding war end up? Well...on Sept. 20th the craziest transactions occurred. Borse Dubai and NASDAQ became partners.

Here is the shady agreement in a nutshell.

Borse Dubai buys OMX..'gives' it to the NASDAQ in a complex trade scheme for a 20% stake in NASDAQ in New York and 28% of the NASDAQ owned stock in the London Stock Exchange (LSE). Along with gaining OMX, NASDAQ will become the principal strategic partner (33%) in the Dubai STATE OWNED DIFX. So in essence , Borse Dubai, within 2 months of its inception, gained a firm grasp of the western 'exchanges' and economically tied Dubai, the United States, Europe, and the Middle East together. Which has been their intent all along.

According to the NASDAQ press release

NASDAQ Increases Certainty of OMX Combination

Borse Dubai to become a 19.99 Per Cent Shareholder in NASDAQ;
Restricted to 5 Per Cent Voting Rights

Steps taken to allow DIFX to be rebranded with the NASDAQ Brand

NASDAQ to Become a Strategic Shareholder in DIFX

Borse Dubai Purchases a 28.0 Per Cent stake in LSE From NASDAQ
.....
Borse Dubai to become a 19.99% shareholder in NASDAQ (capped at
5 per cent voting rights)

NASDAQ will acquire all OMX shares to be purchased by Borse Dubai
in its offer for OMX

NASDAQ will become a strategic shareholder and the principal
commercial partner of Dubai International Financial Exchange
("DIFX")

DIFX will be re branded with the NASDAQ brand and licensed with market leading technology from the NASDAQ/OMX combination

Thursday, Sept. 20th, became much more complicated, though...Qatar, using the Qatar Investment Authority (QIA) freaked upon hearing of the 'agreement' and went on a spending spree. They purchased roughly a 10% share of OMX and sent out a release to shareholders of OMX to 'take no action' on the NASDAQ/Dubai 'agreement'. Then QIA went ahead and purchased a 20% stake in the London Stock Exchange and on Friday, bought the remaining 5.3 million shares of NASDAQ owned shares in the LSE.

Qatar and Dubai are now the two biggest shareholders of the LSE, holding almost half of the world's third-largest stock exchange.reuters

Even more interesting...Qatar will not disclose who they received the money from to buy the LSE shares but, sources say Citigroup will be buying more shares of OMX to help out the QIA.

...sources familiar with the matter said Citigroup was seeking to buy shares in the market on behalf of the QIA.

Qatar said it had bought 20 percent stake of the London Stock Exchange through the Qatar Investment Authority (QIA) and urged OMX shareholders to take no action on the Dubai/Nasdaq offer. Sources familiar with the matter later said the QIA was buying OMX shares. khaleejtimes

Shady, right? It still gets worse.

On Thursday, the infamously shady Carlyle Group sold a 7.5 % stake in their own 'group' to another UAE emirate, Abu Dhabi. Abu Dhabi is basically the 'hub of US Naval forces' in for the Middle East and USAF has a 'huge' air base there. Later they announced they will purchase Canada's PrimeWest Energy Trust.

Abu Dhabi National Energy Co., the state-controlled power generator and oil producer, agreed to buy Canada's PrimeWest Energy Trust for about C$4 billion ($4 billion) in the biggest-ever North American takeover by a United Arab Emirates company.

PrimeWest assets include properties in Montana, North Dakota and Wyoming. The deal is unlikely to spark the furor caused by the planned purchase by Dubai World's DP World unit last year of six U.S. port terminals through its acquisition of London-based Peninsular & Oriental Steam Navigation Co., said Eckart Woertz, chief economist at the Gulf Research Center in Dubai. bloomberg

It's all scandalous.

The obvious signs of subversion are taking place, yet there is no OUTRAGE. Our lawmakers, SEC, Homeland Security and the mainstream media are letting US down. The NASDAQ/Dubai deal is realigning our economies in a complex 'arrangement' that has given the Middle East leverage over western economies.

Homeland Security and the SEC are a joke. If they can't see this obvious subversion and crime they are useless. The DP World fiasco in 2005 was the first attempt at giving Dubai access to America's 'national interests'...the Nasdaq/Dubai arrangement is far worse. Far more dubious. Far more dangerous.

Such alliances could become a way for corporations to get around some political sensitivities about outright takeovers of key national assets

This kind of exchange in the sense of swapping stakes, this reciprocal cross holding, is possibly a substitute for a straight merger because there would be political difficulties in a straight merger," said international securities expert John Coffee, a Columbia University Law School Professor.

We're increasingly going to find that these petrol dollars will migrate not to treasuries but to capital assets in the United States ... and investments in money managers like Carlyle. reuters

according the Sen. Schumer, ""At this early stage this deal gives me pause... While I am and have been a big proponent of foreign investment in the United States, we must still be careful of the kinds of investments made in our critical infrastructure, financial exchanges, utilities, and other areas that are vital to the operation and security of our country...the Dubai exchange "is majority owned and controlled by the government of Dubai, which has previously been cited as a nexus of terror financing, money laundering, and a potential crossroads for shipping and trading for Iran in their quest for nuclear materials and technology." freeinternetpress

I'm sure we are all fine (sure), Although Bush won't speak of the deal in the U.S. he has stated..

US President George W. Bush said the authorities would probe security implications of the deal. "We have a reform process in place that will be able to deal with this issue," Bush said.uaeinteract

and the drama continues... Nancy Pelosi has weighed in on the issue demonstrating that she is a pathetic lawmaker who is in bed with the Bush administration. She has lost my support forever with her 'profound statement'...

"It doesn't raise alarm bells...This is a marketplace issue."

Take her down, Cindy...her 'table' is full of deceit. Deceit leads to war...

Relating news story to watch:
OMX signs IT outsourcing deal with Verizon

" Verizon will take charge of OMX's external network operations and data centre management from Oct. 1 "

Conference in New York to woo investors to Dubai
Fears of dollar collapse as Saudis take fright

Same Players. Different Scandal.

The Carlyle/Haliburton Show is Shifting into 'OVERDRIVE'

There is something interesting going on, but I can't quite put my finger on it.

Yesterday it was reported in the International Herald Tribune that a deal had been completed between the government of Dubai to own a 20 percent ownership stake in the Nasdaq and roughly a 30 percent stake in London. The deal sounds sketchy, right? Because it is.

If this deal is completed it would be the first time that a Middle Eastern government would OWN a large part of the 'exchanges'. This raises many red flags. Should we really be allowing foreign governments to be 'purchasing' ownership stakes into the our stock exchange, London's?

To get a better picture of this deal perhaps we should remember the DP World fiasco in 2005. DP? That stands for "DUBAI ports world". The very company that the Bush administration tried to ram through in '05 is back at it again. This is ridiculous..the Bush/Cheney operation tried to give them access to our ports and it failed. Now they're doing the same but, with our financial system. Are you beginning to get the stench of the Carlyle Group, yet?

This proposed deal is being accomplished through a unique trading scheme. Deals that the SEC should not even consider. Straight to the trash can...but no...

..in May, Nasdaq announced that it had reached agreement to buy the OMX Group for $3.7 billion. But in August, Borse Dubai, the parent company of the Dubai International Financial Exchange came in with a higher bid.

In the deal that is expected to be announced Thursday, Borse Dubai will complete the purchase of the OMX Group and then hand it over to Nasdaq in exchange for at least a 19 percent share in the New York exchange and Nasdaq's stake of about 30 percent in the London Stock Exchange, which is valued at about $1.8 billion. IHT 9/20

Through a complex set of transactions, Borse Dubai will become a shareholder in Nasdaq and Nasdaq will become a strategic shareholder in the Dubai International Financial Exchange (DIFX). Steps will be taken to allow DIFX to be rebranded with the Nasdaq name. Borse Dubai will purchase a 28 per cent stake in the London Stock Exchange (LSE) from Nasdaq and Nasdaq will win control of OMX, given that all the necessary regulatory conditions are met. Khaleej Times 9/21

Here is the extremely interesting part to me. Remember the Carlyle Group? The highly controversial private global investment firm who all the ' big names ' consult for. The company who placed their HQ in Washington, DC "so it wouldn't get lost in the crowd of New York investment firms". The company that bought out the bin Laden's family shares in the company after Sept 11, 2001. Well..there making news again. and what perfect timing they have. I suspect their hand in the 'odd Nasdaq trade' with Dubai.

In an article in the Washington Post this morning , "Carlyle is selling part of its stake to Abu Dhabi".

Private-equity giant Carlyle Group said yesterday that it is selling a 7.5 percent share of its general partnership to an investment group owned by the government of Abu Dhabi.
.......
Some of the countries[in the UAE] once sought to buy assets outright, but after the outcry over a bid to take over management of a U.S. ports operator, many have pursued less visible strategic investments with KEY firms.
......
Some of the countries once sought to buy assets outright, but after the outcry over a bid to take over management of a U.S. ports operator, many have pursued less visible strategic investments with key firms.

Of all the emirates of the UAE, Abu Dhabi is by far the richest. Her 420,000 citizens are estimated to have a monetary worth of $17 million each. In short, Abu Dhabi makes the Hampton's feel like Compton in the 80's.

Excuse me here...but this is some crazy $hit. Carlyle is making out like a bandit while the market is crumbling. While the markets rupture it seems to me like they're shoring up capital and wielding the 'hands of capitalism' to their whim. Wait..David M. Rubenstein,Carlyle co-founder, just said that at the Private Equity Analyst Conference in New York on the 19th

"I don't know if we are going to go public or no....This gives us the flexibility to say yes or no, we don't want to. The reason you go public is to get permanent capital to do a lot of things. But NOW we have permanent capital." Washington Post 9/21

Tom Taulli, author of The Edgar Online Guide to Decoding Financial Statements explains Carlyle Group's newsworthy deal in excellent fashion with his brief analysis on Blogging Buyouts

the firm has snagged a $1.35 billion private investment from Mubadala Development Company, which is part of Abu Dhabi. Essentially, this places a hefty $20 billion valuation on Carlyle.

It's an important move. Carlyle wants to have a permanent source of capital, which can help with minority investment opportunities and even buying up other private equity firms.

Plus, in order to keep up the growth momentum, Carlyle needs to expand into new markets, such as the Middle East.

America. Please wake up! The Carlyle/Haliburton show is shifting into 'OVERDRIVE' and our media is silent.

Related articles:
Carlyle forced to pump £100m into newly floated UK offshoot August 29,2007
Carlyle's Rubenstein the subject of tax protest Sept. 19, 2007
Plan 2030 aims to make Abu Dhabi a global city Sept. 21, 2007
DP World recent news
Fears of dollar collapse as Saudis take fright

Same Players. Different Scandal.

digg it??

Selling the Stock Exchange: Dubai to buy large stake in Nasdaq

The infamously shady Dubai is attempting to purchase a 20 to 30 percent stake in both the New York and London stock exchanges. unbelievable.

Excerpts from the International Herald Tribune

If the deal is completed, Dubai would become the first Middle East government to own a large stake in an American stock exchange. It also is expected to become the largest single investor in Nasdaq.

The deal by the Borse Dubai would give Dubai a stake of 20 percent to 30 percent in Nasdaq, the largest electronic stock market in America, and about 30 percent in the London Stock Exchange, according to people who have been briefed.

....

Reports of a possible deal brought questions last night from lawmakers in Washington about potential compromises to security in the United States. The concerns were similar to those raised more than a year ago when another Dubai-owned company, DP World, tried to buy a company that managed port operations around the United States

.....

"Should any government own any part of a major U.S. stock exchange?" asked Schumer

....

Borse Dubai plans to acquire its stakes in the New York and London exchanges through an elaborate series of steps growing out of its success in outbidding Nasdaq for the OMX Group for about $4 billion.

In the deal that is expected to be announced Thursday, Borse Dubai will complete the purchase of the OMX Group and then hand it over to Nasdaq in exchange for at least a 19 percent share in the New York exchange and Nasdaq's stake of about 30 percent in the London Stock Exchange, which is valued at about $1.8 billion. Read more

Where is the SEC?

Same Players. Different Scandal