Single European Currency To Reduce Number of Stock Exchanges

In a guest article in the 1994 annual report of the Amsterdam Exchanges NV, Mr Paul Koster of accountants Coopers & Lybrand warns that the number of European Stock Exchanges will drop from its current 32 to eight following the introduction of a single currency.

He writes that European exchanges are already competing with each other for new listings and that the competition will intensify with the introduction of a single currency which may be just five years away. As a result the number of bourses will be dramatically reduced.

In the case of Amsterdam, Koster believes, it has successfully faced up to competition and has already attracted new listings such as telecommunications group KPN and services group Vendex. But he adds that Amsterdam could also benefit further by launching more family controlled firms on the bourse which would increase the ASE's clout and at the same time give the Dutch economy a major boost.