Welcome to a new iteration in the Sector Overview series of articles. In this article, I present an overview of a small subset of companies that is often overlooked by investors – although investors use their services on a day-to-day basis: financial market operators. These can include companies that operate stock markets, derivatives markets, bond markets, commodity markets, currency markets etc.
Whether the overall economy or “market” is up or down – investors always flock to trade their assets on these markets. Suffice it to say, these markets provide one of the most essential service in a capitalistic society. Whether its the need to trade commodities on a daily basis, or a startup company going public, these marketplaces play a crucial role in the corporate world. As mentioned – even though investors may use the services from these companies on a day-to-day or even hour-to-hour or minute-to-minute basis, the same investors overlook these companies as an investment choice. I want to highlight some of the major players in this space and some thoughts on investing options.