Freedberg insists emotion plays no part in merger strategy
Deutsche Börse has refuted claims made by Hugh
Freedberg, CEO of Euronext's derivatives subsidiary, Euronext
Liffe, that a merger between the two exchanges would ultimately
be harmful for London's futures industry. Meanwhile, Freedberg
has confirmed that European Competition Commission has launched
a full-scale investigation into potential anticompetitive
issues arising from a European tie-up.
"The deal which Deutsche Börse has proposed would
see London lose its position as Europe's derivatives capital,"
Freedberg told FO Week as he went on the campaign
trail to whip up support for his exchange.
He explained that among other potentially damaging issues
would be the integration of Euronext Liffe's clearing into
Eurex's in-house system, taking business away from London-based
"That would have a significant negative impact on the City
and obviously on LCH Clearnet itself, which is an integral part
of the City's infrastructure," he claimed. "Euronext Liffe
generates over £1tr in notional volume per day which is
put through the clearinghouse and therefore makes a significant
contribution to UK invisible earnings, and that would be lost.
This is not a question of where traders sit and where computers
are located but about the centre of gravity of the
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