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Exchanges in further merger concessions
Source: Bloomberg News |
December 14, 2011, Wednesday
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Print Edition
DEUTSCHE Boerse AG and NYSE Euronext offered further concessions to European regulators after their previous suggestions didn't go far enough to eliminate antitrust concerns over their merger.
The two exchanges are prepared to sell more assets to soothe concern about their dominance in the European single-equity derivatives market and will give any buyer the option to access Eurex Clearing for post-trade processing, the companies said yesterday.
The proposals include the sale of NYSE's London-based Liffe equity options business, according to insiders.
"The revisions are designed to reflect the European Commission's feedback on the initial proposal," the companies said in a statement. The proposals "fully address the commission's remaining concerns," the statement said.
The companies also said they will license the Eurex trading system to a third party interested in offering interest rate derivatives.
A spokesman for Deutsche Boerse declined to comment on the Liffe proposals. Calls to NYSE spokesman James Dunseath seeking comment weren't immediately returned.
European Union officials told Frankfurt-based Deutsche Boerse and New York-based NYSE at a meeting in Brussels on December 6 that their November 17 offer to divest some European single-equity derivatives units didn't sway customers and rivals, according to insiders.
Regulators also weren't convinced that offering competitors limited access to Deutsche Boerse's clearinghouse would do enough to foster competition for exchange-traded derivatives.
The meeting followed two days of talks with regulators in October where the exchanges also failed to alleviate antitrust concerns. Regulators told the companies their deal to create the world's largest exchange would monopolize derivatives trading in the region.
The deadline for the EC to rule on the merger has been extended to February 9, the companies said.
The two exchanges are prepared to sell more assets to soothe concern about their dominance in the European single-equity derivatives market and will give any buyer the option to access Eurex Clearing for post-trade processing, the companies said yesterday.
The proposals include the sale of NYSE's London-based Liffe equity options business, according to insiders.
"The revisions are designed to reflect the European Commission's feedback on the initial proposal," the companies said in a statement. The proposals "fully address the commission's remaining concerns," the statement said.
The companies also said they will license the Eurex trading system to a third party interested in offering interest rate derivatives.
A spokesman for Deutsche Boerse declined to comment on the Liffe proposals. Calls to NYSE spokesman James Dunseath seeking comment weren't immediately returned.
European Union officials told Frankfurt-based Deutsche Boerse and New York-based NYSE at a meeting in Brussels on December 6 that their November 17 offer to divest some European single-equity derivatives units didn't sway customers and rivals, according to insiders.
Regulators also weren't convinced that offering competitors limited access to Deutsche Boerse's clearinghouse would do enough to foster competition for exchange-traded derivatives.
The meeting followed two days of talks with regulators in October where the exchanges also failed to alleviate antitrust concerns. Regulators told the companies their deal to create the world's largest exchange would monopolize derivatives trading in the region.
The deadline for the EC to rule on the merger has been extended to February 9, the companies said.
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