CME: NYSE-Deutsche Deal Won't Alter US Futures Landscape
March 08 2011 - 12:58PM
Dow Jones News
The proposed combination of Europe's biggest futures markets
will do little to help NYSE Euronext (NYX) and Deutsche Boerse AG
(DB1.XE) compete against CME Group Inc. (CME) in the U.S., a senior
CME executive said Tuesday.
"Putting together their pools of liquidity doesn't really create
competitive advantages for them," said Jamie Parisi, chief
financial officer for the Chicago-based exchange company, speaking
at an event hosted by Raymond James.
CME's 2007 deal to acquire the Chicago Board of Trade, which
mirrored the proposed combination of NYSE Euronext's and Deutsche
Boerse's European derivatives platforms, made it more efficient for
customers to group their trading and collateral on a single venue,
Parisi said.
The NYSE-Deutsche deal may do the same for the company in
Europe, "but I don't think it will improve their competitive
position in selling into the U.S.," he said.
CME is facing the most serious challenge in years to its core
interest-rate futures business from NYSE Euronext, which has joined
up with the Depository Trust & Clearing Corp. to develop a new
clearinghouse to back the strategy. Over the past decade, CME has
successfully defended its U.S. turf against an attempted incursion
from Deutsche Boerse's derivatives arm Eurex.
Parisi also said that CME favors partnering with local exchanges
in developing economies as its chief mode of global expansion, as
opposed to making outright acquisitions.
-By Jacob Bunge, Dow Jones Newswires; 312 750 4117; jacob.bunge@dowjones.com
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