Greece bourse sees role as merger wave expands

Greece's Hellenic Exchanges Group expects to eventually jump into the wave of mergers sweeping the world's exchanges, likely first as a buyer and then as a seller. Socrates Lazaridis, chief executive of the stock and futures market operator, said on Friday the industry should continue to consolidate. The trick for the Athens Exchange will be picking the right powerhouse with which to merge.
"We have the privilege to be at the periphery of Europe and so we don't see (consolidation) as a threat, but probably as an opportunity for the next steps of expansion," he said in an interview.
"The best approach is to be an acquirer in the next two years, in order to be acquired," said Lazaridis, previously Hellenic Exchanges' executive vice chairman, who became CEO in October. "The issue for the future is to which global network you can work with?"
The smaller bourses in Greece and other central and eastern European countries are mostly on the sidelines of a recent consolidation frenzy that could revamp ownership of the world's capital markets, following a similar wave in 2006-2008.
Germany's Deutsche Boerse AG plans to buy NYSE Euronext, creating the world's largest operator, while London Stock Exchange Group Plc has bid for Canada's TMX Group Inc. Others, including Singapore Exchange Ltd and Nasdaq OMX Group have had separate deal plans scuttled this year.
Hellenic Exchanges - with a market capitalisation of 345.8 million euros ($501.1 million), and 61.7 million euros in revenue last year - compete in part with national exchanges in Vienna, Budapest, Warsaw and Prague, as well as smaller markets in Croatia, Serbia and Romania.
Average daily share turnover on the flagship, all-electronic Athens Exchange is higher in 2011 than in 2010, though still lower than the previous four years, hurt by Greece's debt crisis.
Lazaridis expects trading volumes to rebound later this year and especially in 2012 as the Greek government sells assets to avoid defaulting on its debt, and as more high-frequency algorithmic traders enter the market.