Welcome for Commission's block on giant derivatives merger deal
Posted, January 11, 2012 @ 10:00
Kay Swinburne MEP, Conservative spokesman on economic and monetary affairs in the European Parliament, tonight welcomed news that the European Commission has effectively blocked a merger between Deutsche Borse and America’s NYSE Euronext.
Dr Swinburne, who consistently questioned the planned tie-up, said the decision by competition commissioner Joachin Almunia - that the deal could only go ahead if the two parties agreed to sell off one of their existing derivatives platforms - would have huge ramifications for the derivatives sector, but would ultimately mean greater competition and a more open market.
She said: "It is vital that competition remains in derivatives markets, particularly given the ongoing reforms concerning OTC (over-the-counter) derivatives since the G20 declaration in Pittsburgh in 2010.
"In the push to better-regulate complex products we must be certain to retain genuine competition in the market so as to get the best deal for investors. In this time of financial uncertainty this is particularly true as derivatives are essential for companies to hedge against business risk.
"Any market consolidation needs to respect the principles of open access and free and fair competition.
"It seems this deal has failed that test and I therefore welcome Commissioner Almunia's intervention."