The Planned Stock Exchange Launch of the U.S. Division of Cement Giant Holcim Has Struck SIX Boss Jos Dijsselhof as a Warning Sign. An Increasing Number of European Companies Are Turning Their Backs on Local Trading Platforms.
In recent times, the numbers of European companies floating on the U.S. stock exchange have been stacking up. Now presented, the Holcim plan to split off the U.S. business and float it on the New York Stock Exchange as an independent company, is a loss for Swiss stock exchange operator SIX.
Self-Critical Stockexchange Boss
At an estimate, the local market could lose out on capitalization of up to 40 billion Swiss francs.
The CEO of the exchange operator seems to be self-critical about the situation. We have to do more to improve relationships with members, said SIX CEO Jos Dijsselhof to news agency «Bloomberg» (paid article). «We sometimes take our issuers or our listed companies a little bit too much for granted. We need to be more commercial.»
Similar Exodus at SIX Subsidiary BME
The move to the United States presents a challenge to large stock exchanges such as the London Stock Exchange, but also for smaller trading platforms in Europe. In the last year, Irish building materials group CRH already switched their main listing from the LSE to the NYSE, and delisted itself in Dublin.
Spanish construction firm Ferrovial is also planning a similar step to trade its shares in New York, away from the BME stock exchange in Madrid. SIX is the majority shareholder of BME.
Already a Trend?
«I don’t see it as a major trend, but I do think we need to continuously work on the competitiveness of Europe,» said Dijsselhof, «that’s my main focus.»
In view of the scale of the Holcim business in the United States, the spin off and having their stock exchange listing there both make sense. You take note of the loss of market share for the Swiss exchange, according to the Dutch national in charge of Switzerland’s financial infrastructure group.
«Talk to them More»
While issues such as taxation in Europe compared to the United States would be beyond the sphere of influence of the exchanges, more could be done when establishing relationships with the companies, Dijsselhof continued. The business has already hired more people and is stepping up its contacts.
The stock exchanges in the United States «are continuously talking to all the chairmen and the boards, they’re much closer to the companies than we are», said Dijsselhof. «We need to invest a bit more into our capabilities and be closer to companies, talk more to them, understand their aims.»
