NYSE Euronext (NYSE:NYX) and Deutsche Börse AG (XETRA: DB1) today confirm that they have submitted a remedy proposal to the European Commission’s Directorate-General for Competition (DG Competition). The proposed remedies are designed to address the remaining concerns of DG Competition in derivatives trading and clearing while preserving the compelling industrial logic of the transaction. The remedy proposal aims at eliminating the existing overlap in European single equity derivatives and ensures continued competition in European interest rate and equity index derivatives.
With respect to European single equity derivatives, the notifying parties have proposed to divest the portions of their respective businesses in which they overlap. NYSE Euronext would divest its pan-European single equity derivatives business, including Bclear, except the options businesses in its home markets, where Deutsche Börse would divest its respective business. This remedy addresses DG Competition’s stated concerns in the area of single equity derivatives.
With respect to European interest rate and equity index derivatives, Deutsche Börse and NYSE Euronext propose to grant unprecedented third-party access to Eurex Clearing for derivatives product innovations taking advantage of the merged entity‘s clearing services. The clearing services would be provided on a fair, reasonable and non-discriminatory basis and include cross margining.
Deutsche Börse 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.
In accordance with the EU Merger Regulation, the timing of yesterday’s 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, and the parties would anticipate closing shortly thereafter in early 2012. The Parties look forward to continuing to work with the Commission to successfully complete the transaction.
You Might Also Like...
- Leading Global Banks Cut Counterparty Risk at AcadiaSoft and Quantile Pilot Risk Optimisation Service
- triResolve Margin Signs over 60 Clients in Anticipation of the Variation Margin Rules
- Northern Trust Survey: Majority of Fund Managers see Upcoming Regulatory Environment Demanding More Time
- Intercontinental Exchange Announces Agreement to Acquire TMX Atrium from TMX Group
- Regulatory Reporting: Is a Holistic Approach Possible?
- CFTC’s Division of Swap Dealer and Intermediary Oversight Issues Time-Limited No-Action Transition for March 1, 2017 Compliance Date for Variation Margin and No-Action Relief from Minimum Transfer Amount Provisions
- EquiChain - A Global Capital Markets Infrastructure Platform to Drive Market Efficiency and Improve Global Investor Access in Emerging and Frontier Markets