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NYSE Euronext – Deutsche Börse Merger: Let the Dance Go On!

ECMI Policy Brief No. 18/31

10 Pages Posted: 4 Jun 2011  

Diego Valiante

Centre for European Policy Studies (CEPS)

Date Written: April 1, 2011

Abstract

In this new ECMI Policy Brief, Research Fellow Diego Valiante offers his insights into the motivations, potential synergies and implications of the proposed merger between NYSE Euronext and Deutsche Börse, which he sees as a continuation of the intricate series of dances begun two decades ago between various exchanges worldwide and which now escalates at global level in the non-equity business. The author finds that the liberalization process and regulatory changes brought about by the financial crisis have revived this long-term process. Finally, he points at the importance of following a dynamic approach in the merger test, which would induce the Commission to impose rigorous conditions to clear the deal. The author also comments on the merits of the competing bid recently withdrawn by NASDAQ OMX and ICE on NYSE Euronext.

Keywords: antitrust, exchanges merger, financial markets, competition policy, market structure

JEL Classification: K21, L40, G10

Suggested Citation

Valiante, Diego, NYSE Euronext – Deutsche Börse Merger: Let the Dance Go On! (April 1, 2011). ECMI Policy Brief No. 18/31. Available at SSRN: https://ssrn.com/abstract=1856724 or http://dx.doi.org/10.2139/ssrn.1856724

Diego Valiante (Contact Author)

Centre for European Policy Studies (CEPS) ( email )

1 Place du Congres, 1000
Brussels, 1000
Belgium

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