News
As expected, the European Commission has blocked the proposed merger between NYSE-Deutsche Börse on competition fears over the prospective size of the combined derivatives market in particular.
The European competition commissioner, Joaquín Almunia, stated: “The merger between Deutsche Börse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide...These markets are at the heart of the financial system and it is crucial for the whole European economy that they remain competitive".
Reaction has been strong - Reto Francioni, chief executive of Deutsche Börse said: “This is a black day for Europe and for its future competitiveness on global financial markets”. The NYSE-Deutsche Borse argument has been that the consolidated organisation would represent a European powerhouse in capital markets that will now result in business going to emerging markets. Francioni concluded, “What comes now is a bitter race by all exchange sites, including those in Asia, for the best positioning.”
Published: 1 February, 2012