Speaking at a seminar on competition within the
wholesale financial market hosted by Cass Business School,
Xavier Rolet hit out at the "duopoly" in derivatives trading in
Rolet said that competition was necessary in the
industry but asked if it could be introduced considering
dominance of Eurex and NYSE Liffe: a duopoly "which may become
He said that the current market infrastructure had
an impact on the openness of the market for future entrants.
His comments came ahead of the launch of Turquoise Derivatives
next month, a trading platform that is 60% owned by the
Rolet also criticised the current structure of
index derivative contract, the intellectual property of which
are owned by exchanges.
"The creation of value in derivatives is based on
the intellectual property of an index," he said. "When we
created the FTSE index we structured it so as not to have a
monopoly. This is not the case with other competitors such as
MP Mark Hoban, the financial secretary to the
Treasury who was speaking at the event, also took issue with
the model of exchange ownership of the intellectual property of
"It seems odd that heavily traded products are
protected by intellectual property and are not fungible," he
Keynote speaker Joaquin Almunia, commissioner for
competition at the EU Commission argued that competition and
stability are not at odds.
However, he warned that the Commission would
prevent one party from controlling any part of the market
infrastructure, "including clearing".