OPINION: The Big Question - How will the stock exchange merger affect London’s financial PR?

Plans to create iX - a merger between the London and Frankfurt stock exchanges - could have widespread implications for the London-based financial PR community.

Plans to create iX - a merger between the London and Frankfurt

stock exchanges - could have widespread implications for the

London-based financial PR community.


Cubitt Consulting

’As the focus of the investment community has become increasingly

pan-European, so key audiences have become more international and

financial communications programmes and networks have developed to

anticipate market changes. Client demand and the increasing use of the

internet as a distribution and information channel has significantly

widened the number and nature of target audiences. Clients wanting cross

border profiling have long stressed a network as crucial to well

co-ordinated campaigns. A combined London/Frankfurt bourse may awaken

those agencies which have neglected a European network strategy. But

they may find it hard to strike the right kind of relationship. Others

have already been there and done that.’


Citigate Dewe Robinson

’There are substantial details and issues still to be sorted out and

stock market practitioners are far from united on how to proceed. When

it happens, it will be a further step in an already strong move towards

internationalisation, indeed globalisation, of financial markets. I’m

sure we will see the increase in major cross-border deals, now often

contested, continue to grow. Any IPO of any size involves marketing

equity to several key financial centres and this development underlines

the need for serious financial PR players to have strong international




’The planned merger of the London and Frankfurt stock exchanges is an

inevitable consequence of increasing financial deregulation and the

relentless demand for easy and efficient investment in equities across

geographical borders. The result for financial PR firms is that they

will have to adapt to provide communications skills effectively across a

European, and indeed a global, marketplace as a company’s shareholder

register will increasingly reflect an investor community spanning many

countries. The ability to be able to provide locally-based advice in

each of the key financial centres across Europe will rapidly become a

prerequisite for any financial PR firm wanting to flourish in the

future. For London-based firms that maintain a domestic focus the future

does not look bright.’


Gavin Anderson and Company

’This will represent a pan-European growth opportunity. iX already

accounts for over 50 per cent of European daily trades and with Nasdaq

and potentially Milan, Madrid and other European exchanges poised to

join, the growth in demand for financial PR services will be strong. The

financial PR firms with appropriate resources in the main markets that

can capitalise on increasingly pan-European business and information

flows will be clear winners. Our business model of financial PR

specialists based in London, Frankfurt, Paris and globally, not least

provides a tried and trusted platform for cross-border PR opportunities,

evidenced by our recent working on 15 Neuer Markt listings.’

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