The latest development in the ongoing beauty contest to
become Euronext's merger partner would not result in a
pan-European derivatives exchange, a source close to the matter
last week told FO Week.
A working group led by Henri Lachmann, chairman of Schneider
Electric, and commissioned by French business lobbying group
Paris Europlace, proposed a combined European equity exchange
business, based on Euronext and Deutsche Börse, built
along federal lines.
Crucially, however, the proposal cast out the possibility of
the respective derivatives businesses, Euronext Liffe and
Eurex, also joining forces. FO Week's source said that
Euronext was also keen to avoid any anticompetitive or
monopolistic issues potentially thrown up by the European
derivatives tie-up, which would entail over 90% of all European
exchange traded derivatives contracts being offered on one
The existence of London Stock Exchange, a significant equity
player with practically no derivatives presence, would prevent
a similar situation occurring on the equity side.
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