NYSE, Deutsche Börse Talk Tie-Up as Competition Intensifies

By JACOB BUNGE, WILLIAM LAUNDER and AARON LUCCHETTI

NYSE Euronext and Deutsche Börse AG confirmed that they are in advanced tie-up talks, reviving a plan that would create the world’s largest financial exchange if it manages to pass scrutiny from regulators.

 

With the parent of the New York Stock Exchange and Germany’s Deutsche Borse in advanced talks to merge, Aaron Lucchetti and Dennis Berman look at the likely impact on Wall Street as the financial capital of the world.

The proposed all-stock deal comes two years after the companies ended exploratory talks and in response to new trading platforms run by banks and third parties that have been taking share from established exchanges across a range of asset classes.

A deal is driven in part from the opportunities in the derivatives market, particularly as an evolving regulatory landscape drives more over-the-counter business on to exchanges. The enlarged company would have a dominant role in the European derivatives market and provide a new beachhead for NYSE’s efforts in the U.S. futures and options sector.

A deal could be announced as early as next week, according to people familiar with the situation, though a host of regulatory challenges await on both sides of the Atlantic, according to competition experts.

Continue reading here.

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