Nasdaq OMX has added its voice to concerns over the merger between rival NYSE Euronext and Deutsche Börse. The transatlantic exchange said in a note, seen by Financial News, that the proposed new group would "establish a monopolistic situation" that would hinder competition.
Nasdaq's concerns echo comments made by the London Stock Exchange, which claimed in a July briefing note that the NYSE-Börse deal will "eliminate competition” in the European listed derivatives market and that the two companies have a “track record of acting against customers’ best interests”.
Nasdaq's submission focuses heavily on the post-trade clearing side of the deal, arguing that Deutsche Börse's clearing house, Eurex, would enjoy enormous economies of scale in the new group that no other clearing house could compete with. It concludes: "It is our opinion that allowing for this merger [between Deutsche Börse and NYSE] would not serve the best of interest of the users of the European derivatives markets".
Nasdaq's own attempt to wrest control of NYSE Euronext through a hostile takeover fell apart in May when the US Department of Justice said it would not allow the deal to go through. Since then the exchange has confirmed that it has made a bid for a minority stake in Anglo-French clearing house, LCH.Clearnet, in what market-watchers regard as a broader attempt to expand its post-trade business.
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