D.Boerse, NYSE eye options as deal fails - News and Current Events | futures io social day trading
futures io futures trading


D.Boerse, NYSE eye options as deal fails
Updated: Views / Replies:343 / 0
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors – all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you don’t need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

D.Boerse, NYSE eye options as deal fails

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

D.Boerse, NYSE eye options as deal fails

(Reuters) - NYSE Euronext and Deutsche Boerse could try to put the disappointment of their failed $7.4 billion merger deal behind them by turning their attention to European exchange and clearing assets and a less ambitious growth path.

Deutshe Boerse and NYSE's proposal to create the world's largest exchange operator was rejected by European anti-trust authorities on Wednesday, making it the fourth to be blocked among a series of large exchanges deals struck in a frenzy of activity over the last year.

Now, the exchange operators need another way of facing the imperatives that led them to seek mergers in the first place: the need for scale and cost savings amid global competition.

NYSE Chief Executive Duncan Niederauer, in an interview last week in Davos, said the company had another strategy it had been pursuing even as it tried to close on the Deutsche Boerse deal.

"We have a standalone strategy that was our strategy before we engaged in this. We carried out a lot of elements of that in 2011," Niederauer told Reuters on Friday. "We will continue to be primarily focused on the derivatives and technologies businesses."

On Wednesday, NYSE said it plans to return $550 million to shareholders through a share repurchase program and to seek to grow its derivatives business.

NYSE and Deutsche Boerse have also been linked in media reports with the London Metal Exchange (LME), the metals market that has been put up for sale by shareholders.

A move on the LME would pitch them into a wide field thought to include the IntercontinentalExchange and CME Group from the United States, and the LSE and British broker

ICAP.
NYSE Euronext is also seen by analysts as an obvious rival bidder for European clearing house LCH.Clearnet, which has been in exclusive sales talks with the London Stock Exchange since September.

NYSE was in talks about a possible joint bid for LCH with data vendor Markit but the plan was scrapped in the middle part of last year.

"NYSE Euronext couldn't have been 100 percent focused on LCH with the Deutsche Boerse talks going on at the same time. In retrospect, it looks like they may have missed out on LCH," said Simmy Grewal, senior analyst at Aite Group.
But Richard Perrott, an analyst at Berenberg Bank, believes NYSE could look to rekindle that deal. He said: "Both exchanges will likely look at the LME and I suspect NYSE will see if they can resurrect their earlier talks with LCH Clearnet."

Steve Grob, head of Group strategy at trading system vendor Fidessa, said: "The rejection by the EC was not a surprise so they will have thought about their Plans B and C."

Deutsche Boerse and NYSE Euronext declined to comment on the possibility of bids for other assets.

END OF MEGA-DEALS?
Analysts said the regulatory veto on Wednesday might put a temporary brake on mergers.
"The motivation to do deals is as relevant as ever, with exchanges needing to scale up and seek cost synergies, but the failed deals over the past year will make investors and companies more cautious," said Perrott.

"But Deutsche Boerse/NYSE Euronext was an unusual deal in that there were obvious competition concerns that wouldn't exist with most other exchange combinations."
Nasdaq OMX Chief Executive Bob Greifeld said large deals are still feasible, but companies would need to take into account the regulator's analysis of the market.

"Now, when you look at this, any time you are trying to complete a merger where the number of competitors is low or the market share is high, your success will hinge on whether you can broaden the definition of the market," he told a conference call after Nasdaq posted better-than-expected quarterly earnings.

Among other failed deals were Nasdaq and IntercontinentalExchange's bid for NYSE Euronext which was rejected by the U.S. Department of Justice, London Stock Exchange's takeover of TMX Group was halted by shareholders of the Toronto Stock Exchange operator, and Singapore Exchange Ltd's bid for Australia's ASX Ltd was blocked by the Australian government.

EU regulators blocked the tie-up of Deutsche Boerse and NYSE Euronext to stop them taking a stranglehold on the European futures market.

The European Commission consulted more than 700 market participants and stakeholders during its assessment and said in a 459-page document on Wednesday that the combined entity would make it hard for new players to compete.
"The merger between Deutsche Boerse and NYSE Euronext would have led to a near-monopoly in European financial derivatives worldwide," EU Competition Commissioner Joaquin Almunia said in a statement.

"These markets are at the heart of the financial system, and it is crucial for the whole European economy that they remain competitive. We tried to find a solution, but the remedies offered fell far short of resolving the concerns."
Deutsche Boerse and NYSE Euronext had refused to sell either the German operator's Eurex derivatives market operator or the U.S. company's London-based futures exchange Liffe to address such concerns.

The failure will also cost the banks advising on the deal.
NYSE's bankers, which included Perella Weinberg Partners and BNP Paribas, stood to earn about $51 million in fees if the deal had closed, according to Freeman & Co estimates. Now they will likely make about 10 percent of that amount.

For Deutsche Boerse, bankers included Deutsche Bank and JPMorgan Chase, which will now likely earn 10 percent of the $48 million they stood to make if the deal had closed, Freeman said.

Deutsche Boerse shares closed up 3.4 percent, while NYSE Euronext shares closed down 0.5 percent.

D.Boerse, NYSE eye options as deal fails | Reuters

Reply With Quote

Reply



futures io > > > > D.Boerse, NYSE eye options as deal fails

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
EU antitrust chief to block NYSE/D. Boerse deal kbit News and Current Events 0 January 10th, 2012 02:53 PM
Deutsche Boerse, NYSE deal wins U.S. approval kbit News and Current Events 0 December 22nd, 2011 03:45 PM
D.Boerse, NYSE mull spin-off on EU demands kbit News and Current Events 0 December 7th, 2011 12:26 PM
D.Boerse, NYSE propose remedies to seal mega-deal kbit News and Current Events 0 November 18th, 2011 08:14 AM
NYSE, Deutsche Boerse Agree To Create Global Exchange Quick Summary News and Current Events 0 February 15th, 2011 11:30 AM


All times are GMT -4. The time now is 05:20 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.08 seconds with 19 queries on phoenix via your IP 54.221.73.186