Bloomberg News

Deutsche Boerse’s Eurex Futures Exchange Gets New Trading System

February 09, 2012

Feb. 9 (Bloomberg) -- Deutsche Boerse AG said it’s Eurex futures exchange will move to a new trading system in the fourth quarter after its plan to buy NYSE Euronext was blocked by European competition regulators.

The platform is being developed internally and will be based on one already in use at the International Securities Exchange, the U.S. based options market owned by Frankfurt-based Deutsche Boerse and Eurex, the exchange said in an e-mailed statement today. The company plans to start moving products from the present trading system in December.

“Technology is a very important differentiator in today’s competitive global market,” said Juerg Spillmann, deputy chief executive officer of Eurex, who’s responsible for information technology and operations. “The complete overhaul of our trading architecture is a decisive element of our vision to operate markets globally around-the-clock.”

Both NYSE Euronext, which reports earnings tomorrow, and Deutsche Boerse said last week they will focus on standalone strategies, terminating their merger after a year of work. Deutsche Boerse agreed to acquire its New York rival in a deal valued at $9.5 billion when it was announced last February.

On Feb. 1, European Union regulators vetoed a plan to create the world’s biggest exchange, after concluding that the merger would hurt competition. Deutsche Boerse called it “a black day for Europe and for its future competitiveness.”

The deal would have led to a “near-monopoly” in European exchange-traded derivatives, uniting both Eurex, the region’s largest derivatives exchange, and NYSE Euronext’s Liffe, the second-largest. Any savings would “not be substantial enough to outweigh the harm to customers caused by the merger,” the European Commission said.

Deutsche Boerse’s acquisition of NYSE Euronext would have put more than 90 percent of Europe’s exchange-traded derivatives market and about 30 percent of stock trading in the hands of one company.

--Editor: Andrew Rummer

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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