Last week, the report prepared for Paris Europlace by Mr. Henri Lachmann was presented publicly. Euronext considers that Mr. Lachmann’s suggestion that the cash equity trading activities of Deutsche Börse and Borsa Italiana be contributed to Euronext can complement our combination agreed with NYSE.
Euronext believes in and has led the consolidation of European cash equity markets through the promotion of its successful horizontal and federal model. Euronext therefore believes that a combination of Euronext and the cash equity trading activities of Deutsche Börse and Borsa Italiana:
Is fully compatible with the anticipated merger between NYSE and Euronext;
Will create an enlarged pan-European cash equity trading platform desired by users and issuers by including Frankfurt and Milan alongside Amsterdam, Brussels, Lisbon and Paris;
Will deliver the separation of equity trading from the clearing and settlement for European equities as requested by the user community; and
Will result in significant benefits and additional synergies for users and shareholders alike.
By focusing on cash equity trading, and specifically not including derivatives trading, clearing and post trade, we believe that, as Mr. Lachmann properly identified, implementation risks due to user and competition concerns can be minimized whilst capturing all relevant user and shareholder benefits.
This addition to the Euronext NYSE combination is suggested with the full support of NYSE.
The Euronext NYSE combination will create a true global champion and better position European market places as a center of international finance. The new company will have a balanced governance structure, underscored by the fact that the current Chairman of Euronext Supervisory Board will be the Chairman of the new entity. The federal business model central to the success of Euronext will be maintained, and the European champion that is Euronext could be strengthened by further consolidation and the inclusion of other European partners within its flexible and federal structure.
© Euronext
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article