By Shanny Basar
Of FINANCIAL NEWS
Senior executives at some of the biggest exchanges in the U.S.
have given their initial reactions to the two mergers in their
industry announced this week, and have played down the potential
impact they will have on competition.
On Wednesday this week the London Stock Exchange Group PLC
(LSE.LN) and the Toronto Stock Exchange revealed plans to merge and
this was closely followed by arch rivals Deutsche Bank AG (DBK.XE)
and NYSE Euronext (NYX) confirming they intended to do the
same.
At the Credit Suisse Financial Services Conference in New York
yesterday, senior executives from two of the U.S.'s biggest stock
markets gave their reaction to the week's events.
Adena Friedman, chief financial officer of Nasdaq OMX Group Inc.
(NDAQ), said: "The last 48 hours have been a whirlwind and the best
thing for us and our shareholders is to be analytical and rational
when looking at all potential outcomes."
She added that both deals had huge regulatory implications and
that it would take a long time before Nasdaq OMX and its
competitors knew how the merged groups would shape their industry.
Canadian Industry Minister Tony Clement said yesterday that he
hoped to announce next week whether there will a government review
of the merger between the LSE and TMX Group Inc.(X.T).
Freidman said: "The deals do not provide a significant
competitive dynamic to what we are trying to do and there may be
opportunities from a shift in share in options or in Europe. Our
job is to sit back and fully understand these deals as a fiduciary
for our shareholders."
Jamie Parisi, chief financial officer of CME Group Inc.(CME),
said: "The combination of cash markets is what it is and won't
significantly change our competitive competition. In derivatives
both Deutsche Boerse and NYSE Euronext are good competitors and
will remain so if they are put together. However we have done a
really good job at competing in Europe and we will continue to do
so."
During the CME's results call earlier this month, chief
executive Craig Donohue said that about 20 firms are in talks to
join as members or users of CME Clearing Europe, a new U.K.
clearing house, that has received regulatory approval.
NYSE Euronext was due to present at the same conference but
cancelled its participation yesterday.
William Brodsky, chief executive of CBOE Holdings Inc.(CBOE),
did not see believe there would be an impact on the U.S. options
market. He said on a results call yesterday: "I don't think
anything we saw or talked about going on Wednesday is going to
change competition in a meaningful way."
Meanwhile, Michael Bloomberg, mayor of New York City, came out
in support of the Deutsche Boerse deal with NYSE Euronext.
According to Dow Jones Newswires, Bloomberg said in a news
conference: "This is good for American companies that want to
compete around the world. If the New York Stock Exchange didn't
form a partnership like this, they could be frozen out."
Website: www.efinancialnews.com