Commission to probe stock exchange merger

In-depth probe of Deutsche Boerse/NYSE Euronext deal to focus on derivatives.

The European Commission has opened an in-depth investigation into the planned merger between Deutsche Börse and NYSE Euronext, two stock exchange groups.

The Commission’s initial investigation indicated competition concerns in a number of areas, in particular in the field of derivatives trading and clearing.

The Commission has 90 working days, until 13 December 2011, to take a final decision on whether the transaction would reduce competition.

Joaquín Almunia, the European commissioner for competition policy, said: “The proposed merger would remove a strong competitor from the market and would give the merged company by far the leading position in derivatives trading in Europe. The Commission needs to make sure that markets which are at the heart of the financial sector remain competitive and efficiently deliver to users.”

Deutsche Börse operates a number of stock exchanges worldwide, including the Frankfurt Stock Exchange and the Eurex derivatives exchange. NYSE Euronext operates stock exchanges in Amsterdam, Brussels, Lisbon and Paris, as well as the New York stock exchange and the Liffe derivatives exchange in London.

The two parties notified the Commission of their intention to merge on 29 June 2011.

 

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