A Reuters Insider study of trading exchange tie-ups shows they do cut costs, but the promised combined revenue benefits are harder to prove -- and may be nonexistent. Reuters Insider studied 15 of the largest exchange deals from 2004 to 2008 with a focus on operating expense trends. On average, they fell to about 26 percent of revenue two years after the mergers, down from about 30 percent. Those savings came from combinations of job cuts, real estate reductions, and centralized clearing. "You probably would have seen op ex (operating expenses) to revenues rise for the acquiring companies if they hadn't done the deals," said Richard Repetto, an analyst with Sandler O'Neill & Partners.
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