Nasdaq’s fears over exchange link-up

Nasdaq has intensified its opposition to the planned tie-up of NYSE Euronext and Deutsche Boerse, saying the deal would “irrevocably destroy” competition in Europe’s listed-derivatives market, a report said.
By The Newsroom
Published 10th Sep 2011, 07:00 BST

Deutsche Boerse’s planned takeover of NYSE Euronext, to create the world’s biggest bourse, will likely conclude once the European Commission reaches a decision on its antitrust probe into the new group.

A final decision is expected on December 13 this year, according to the Wall Street Jour- nal.

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In a response to the commission, which sought industry feedback for the antitrust review, Nasdaq said earlier this month the new entity would “destroy” competition in derivatives trading and “exploit its dominance” over customers, the newspaper reported.

Deutsche Boerse said the new combination would still face strong competition in its core area of activity, namely the provision of services for the hedging and trading of risks associated with capital markets.

“The Eurex/Liffe combination will continue to face strong competition from European and non-European exchanges, including CME, ICE, LSE, NASDAQ OMX, other trading platforms, and Over The Counter” the Boerse operator said.

“Users of derivatives exchanges are sophisticated players who are flexible enough to switch between exchanges and trading platforms on a global level and to sponsor new trading venues,”

Nasdaq could not be reached for comment.

Related topics:Europe