Deutsche Börse and Nyse Euronext to shed businesses to win EU approval for merger

Deutsche Börse and Nyse Euronext to shed businesses to win EU approval for merger

Deutsche Börse and Nyse Euronext are proposing to divest their overlapping equity options business across Europe and open up third party access to Eurex Clearing in an effort to win EU approval for their $9 billion merger deal.

The two exchanges have submitted the remedial measures to the European Commission's Directorate-General for Competition (DG Competition), which has been running the rule over the proposed merger.

Nyse Euronext says it will divest its pan-European single equity derivatives business, including Bclear, except the options businesses in its home markets, where Deutsche Börse would shutter its respective business.

They have also agreed to grant unprecedented third-party access to Eurex Clearing for interest rate and equity index derivatives on a "fair, reasonable and non-discriminatory basis" and include cross margining.

In a positioning statement, the bourses say: "Deutsche Boerse and Nyse Euronext continue to believe that the transaction will have no detrimental effect on competition, but rather will enhance it by delivering a regulated, stable and transparent European counterweight to established market centers in America and Asia and delivering significant efficiencies to users of our markets."

The timing of the submission will automatically extend DG Competition's review period by 15 working days. Under the revised timetable, DG Competition is now set to complete its review by January 23, 2012.

Comments: (0)

Trending