News Centre

Mergers: European Commission Prohibits Proposed Merger Between Deutsche Börse AG And NYSE Euronext – Frequently Asked Questions

Date 01/02/2012

(See IP/12/94)

What is the role/importance of derivatives for the European economy?

Derivatives are contracts traded on financial markets that are used to transfer risk. Derivatives are of key importance for the European economy. This is because they serve as insurance against price movements and reduce the volatility of companies' cash flows, which in turn results in more reliable forecasting, lower capital requirements, and higher capital productivity. Derivatives have in recent years developed into a main pillar of the international financial system and are an indispensable tool for risk management and investment purposes. Derivatives contribute to improve the operational, information, and allocation efficiency, thereby increasing the efficiency of financial markets. They help lower the cost of capital and enable firms to effectively invest and channel their resources, thereby making them an important driver of economic growth.

Drive For Low Latency Increases Demand For Measurement Tools, Reveals New Research From GreySpark Partners - Latency Is A Challenge Across Asset Classes - Pursuit Of Speed Yields A Demand For Latency Measurement And Reduction Offerings

Date 01/02/2012

GreySpark Partners, the capital markets consultancy, has revealed that low latency requirements are no longer just the confine of the equity trading markets and that the need for speed is equal, if not greater, in other asset classes.

Japan’s Financial Services Agency Publishes Registration Of Credit Rating Businesses

Date 01/02/2012

In accordance with Article 57(3) of the Financial Instruments and Exchange Act as applied mutatis mutandis pursuant to Article 66-48 of the same act, today the FSA registered Nippon Standard & Poor's K.K., notified the corporation that registration regarding the application was completed, and placed the corporation in the List of Licensed (Registered) Financial Institutions.

Mergers: European Commission Blocks Proposed Merger Between Deutsche Börse And NYSE Euronext

Date 01/02/2012

The European Commission has prohibited, on the basis of the EU Merger Regulation, the proposed merger between Deutsche Börse and NYSE Euronext, as it would have resulted in a quasi-monopoly in the area of European financial derivatives traded globally on exchanges. Together, the two exchanges control more than 90% of global trade in these products. The Commission's investigation showed that new competitors would be unlikely to enter the market successfully enough to pose a credible competitive threat to the merged company. The companies offered, in particular, to sell certain assets and to provide access to their clearinghouse for some categories of new contracts, but overall, the commitments were inadequate to solve the identified competition concerns.

Tokyo Stock Exchange Trading Overview And Preliminary Figures For January 2012

Date 01/02/2012

This report contains trading conditions of the Tokyo Stock Exchange for January 2012.

NYSE Euronext Statement On EU Decision To Prohibit Merger Announces Resumption Of $550 Million Stock Repurchase Program Following Termination Of Merger Agreement

Date 01/02/2012

NYSE Euronext announced today that in light of the decision by the European Commission to prohibit its proposed combination with Deutsche Boerse, the companies are in discussions to terminate their merger agreement. 

Statement From Manfred Gentz, Chairman Supervisory Board Deutsche Boerse AG On European Commission Blocking Merger Between Deutsche Börse And NYSE Euronext

Date 01/02/2012

"The European Commission’s decision is highly regrettable and very hard tocomprehend. It negates the existing, fast-growing global competition amongexchanges and it contradicts reality in putting up a strict separationbetween the exchange-traded and OTC derivatives markets. For Europe, thedecision squanders a great opportunity to create a globally competitiveexchange based in Europe and Germany and with a strong US partner."

European Commission Blocks Merger Between Deutsche Börse And NYSE Euronext - Deutsche Börse Achieves Substantial Earnings Growth In 2011/ Company Targeting Organic Growth/ Key Decisions For Further Growth Already Made

Date 01/02/2012

The European Commission today announced that it is prohibiting the planned merger between Deutsche Börse AG and NYSE Euronext because, based on its definition of the market for derivatives trading, it considers the merger to be inadmissible under competition law. Deutsche Börse AG has taken note of the decision with disappointment. The Executive Board of Deutsche Börse AG responded: “This is a black day for Europe and for its future competitiveness on global financial markets. The EU Commission’s decision is based on an unrealistically narrow definition of the market that does no justice to the global nature of competition in the market for derivatives. The over-the-counter (OTC) derivatives market, the major part of the market as a whole, is completely precluded. We therefore regard the decision as wrong. What’s more, it is inconsistent and runs counter to the aim of extending financial market regulation to the OTC derivatives market which the Commission is simultaneously pursuing. In its decision, the European Commission also takes a contrary stand to the assessment of the derivatives market arrived at in the USA back in 2007. There, the two Chicago exchanges CME and CBOT were allowed to merge to form the largest globally operating derivatives exchange.”

Bloomberg Opens Its Data Distribution Technology - Open Market Data Initiative Will Spur Innovation & Industry Collaboration

Date 01/02/2012

Bloomberg is opening its market data interfaces for use by technology professionals globally, without cost or restriction, the company announced today. Bloomberg’s application programming interface, known as BLPAPI, is used daily by more than 100,000 professionals across the financial services industry and is now publicly available under a free-use license at http://open.bloomberg.com.*

FESE Position On The MiFID II Proposal

Date 01/02/2012

We welcome the Commission’s proposals and fully endorse the objectives supporting the revision of MIFID. FESE agrees with many of the improvements proposed by the Commission. At the same time, on a number of other issues, we have significant concerns with the proposals. We have been active in analysing the implementation issues with MiFID I and have brought several items to the attention of the Commission or the supervisors over the last years which has led to some of the important issues being highlighted in the Review (e.g. the unregulated equity platforms).