Bloomberg News

Deutsche Boerse-NYSE Review Said to Cover Derivatives, Clearing

October 10, 2011

Oct. 10 (Bloomberg) -- European antitrust regulators are studying how Deutsche Boerse AG’s takeover of NYSE Euronext will affect derivatives trading, clearing and index licensing, three people with direct knowledge of the review said.

Regulators stopped short of offering possible remedies in a statement sent to the companies last week, the people said, declining to be identified because the document is private. Deutsche Boerse agreed in February to acquire NYSE Euronext, creating the world’s largest futures exchange.

Frank Herkenhoff, a spokesman for Deutsche Boerse in Frankfurt, Caroline Nico, a spokeswoman for NYSE Euronext in Paris and Amelia Torres, a spokeswoman for the European Commission in Brussels, declined to comment.

The so-called statement of objections, sent last week to the two exchanges from Brussels-based regulators, is the latest step in a process that started June 29 when the companies sought regulatory approval to merge. The EU Competition Commission said in August that it will conduct an expanded probe and set a Dec. 13 deadline to give its final opinion.

Joaquin Almunia, the EU’s antitrust commissioner, expressed concern last month the deal may monopolize the derivatives market. Regulators have also cited concern that the merger will lead to reduced innovation in derivatives products and technology and less competition for post-trade clearing services. Deutsche Boerse’s “vertical silo,” which routes all trade clearing through its own services, was targeted by Almunia in March. He said he preferred a “more open business model” for markets.

--Editors: Chris Nagi, Stephen Kleege

To contact the reporter on this story: Nandini Sukumar in London at nsukumar@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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