Why the Competition Commission's decision conflicts with EU regulation.
Many in the industry have met Deutsche
Börse’s challenge to the European Competition
Commission’s decision to block its merger with
NYSE Euronext with accusations of sour grapes. However, it is
essential that the ground rules of European exchange mergers
are clear as the boundaries between OTC and exchange traded
DG Comp found that there was no justification to
NYSE’s and DB’s claims that the OTC
and ETD markets compete. To support this it argued: OTC and ETD
fulfil different customer demands; ETD products are fully
standardised and smaller, more liquid contracts compared to
OTC; and OTC derivatives "by definition cannot be traded on
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