Bloomberg News

Deutsche Boerse, NYSE Said to Defend Deal at Hearing Next Week

October 20, 2011

Oct. 20 (Bloomberg) -- Deutsche Boerse AG and NYSE Euronext will respond to European Union concerns about their plan to create the world’s largest exchange at a hearing next week, according to two people familiar with the matter.

The two exchanges will lay out reasons why the deal should go ahead at a hearing on Oct. 27 and 28 in Brussels, said the people, who declined to be identified because the hearing is private. The companies will address allegations that the merger would harm competition for derivatives trading, clearing and index licensing listed in an EU statement of objections this month, three people familiar with the review said last week.

EU regulators are probing the merger, which would put more than 90 percent of the region’s exchange-traded derivatives market and about 30 percent of European stock trading in the hands of one organization. The regulator has cited concerns over reduced innovation in derivatives products and technology.

NYSE Euronext Chief Executive Officer Duncan Niederauer said the companies would “know where we stand a lot more by the end of this month” following the hearing, according to a transcript of a video message to employees filed with U.S. securities regulators this month.

Amelia Torres, a spokeswoman for the European Commission, James Dunseath, a spokesman for NYSE Euronext in London, and Naomi Kim, a spokeswoman for Deutsche Boerse in New York, declined to comment on the date for the hearing.

The European Commission can require companies to change their behavior or to sell off units to eliminate possible competition concerns. While it has a deadline of Dec. 13 to rule on the deal, the review could be extended.

--Editors: Anthony Aarons, Nick Baker

To contact the reporters on this story: Aoife White in Brussels at awhite62@bloomberg.net.


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