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Nasdaq OMX said the merged group would "destroy" competition in derivatives trading and "exploit its dominance" over customers. The merged entity would drive competing platforms out of the market since it would suck in liquidity both for established products currently traded on other exchanges, and importantly also for any new product launched by other exchanges in the future.
Once competitors would have been driven out of the market, the merged entity would have complete freedom to exploit its dominance by extracting extra fees from customers. The response comes as the merger moved a step closer in August, following approval from the Committee on Foreign Investment in the US, a government panel that vets foreign takeovers of US assets. A green light from the European Commission's competition authorities remains the final hurdle.
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