European Commission to investigate London Stock Exchange-Deutsche Boerse merger
Plans to merge the London Stock Exchange and Germany ’ s Deutsche Boerse are being investigated by the European Commission , on the grounds that it could be anti-competitive . The £ 21 billion merger , which if successful would combine the stock markets of the UK , Germany and Italy into a single company , has become the subject of intense political argument , as opponents fear the combined group would have a monopolistic hegemony over European equities and derivatives trading . In response , the LSE has stated that it is considering selling LCH . Clearnet SA , the French division of its in-house clearing house LCH . Clearnet . However , it remains unclear if that will be enough to mollify the European Commision . A previous merger attempt between the LSE and Canada ’ s TMX Group came unstuck in 2011 , after a group of Canadian banks cooperated to outbid the LSE and buy TMX Group outright , thus keeping it under Canadian control . The LSE-Deutsche Boerse deal comes amid a global round of exchange consolidation . In March 2016 Nasdaq bought the International Securities exchange from Deutsche Boerse , in a $ 1.1 billion deal ; Deutsche Boerse had originally paid $ 2.8 billion to acquire ISE in 2007 .
Bats Global Markets acquired by Chicago Board Options Exchange
The Chicago Board Options Exchange has agreed to purchase US exchange group and European MTF operator Bats Global Markets , in a deal said to be valued at $ 3.2 billion . The two parties claim the acquisition will create one of the largest exchange groups in the world . Bats is known for its equity trading venues , including Bats Europe , which acquired European MTF Chi-X Europe back in 2011 ; at the time , Chi-X Europe held a third of pan-European equity market share . Bats also acquired Direct Edge , a former US equities exchange that was one of its main competitors , back in 2014 . Bats is currently the second largest stock exchange in the US after Nasdaq , based on volume . “ By combining our highly complementary skills with CBOE to improve markets through product innovation , organisational efficiency and technological excellence , we will be strongly positioned to compete more vigorously than ever before in all the markets in which we operate to the benefit of our customers ,” said Bats Global Markets chief executive Chris Concanon . “ Throughout our 10-year history , Bats has always sought to make markets better for market participants and we believe this transaction meshes perfectly with that mission .” The business will be headquartered in Chicago , with major offices in London , Kansas City and New York . While detailed integration plans and timelines are to be determined , the combined firm will eventually utilise Bats ’ proprietary technology . “ We have great respect for CBOE and their leadership team , which will expand to include senior executives from Bats ’ global team including the two of us – Chris will become president and chief operating officer and Mark will continue to lead the European operations as president of Europe ,” added the Bats official statement on the deal .
October 2016 www . buysideintel . com
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