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23 August 2013

ICE's NYSE Euronext deal will raise its game in the European derivatives market


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The IntercontinentalExchange and NYSE Euronext moved closer to completing their merger after securing the requisite approval from the Securities and Exchange Commission (SEC).


They now await the green light from the individual country regulators in Europe and could close the deal as soon as the first week of September. Once complete, the transaction will make the ICE-NYSE combined entity the third largest exchange operator in the world, behind Hong Kong Exchanges and Clearing, and the CME Group in that order.

The merger will provide ICE a tremendous opportunity to expand in the European derivatives market. This segment is set to grow rapidly over the next few years due to regulatory tailwinds and several leading players entering it in the hope of gaining market share. However, ICE is likely to spear ahead of these competitors once it acquired NYSE Euronext.

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