US House Judiciary Committee hearing on Competition and Consolidation in Financial Markets: The NYSE-Deutsche Börse Merger

13 June 2011

Participants included Chief Operating Officer Leibowitz of NYSE Euronext, and President Katz of the International Securities Exchange. Lawmakers expressed concern about the merger, focusing on how the deal will result in one entity controlling a large share of the American equity options market.

Points made by Mr Katz were that through the merger NYSE and DB will be:

• a world leader in derivatives and risk management;

• the largest capital-raising venue in the world;

• the most competitive and innovative exchange provider of technology services and information content; and

• a global pioneer in the international post-trade infrastructure and settlement.

A more consolidated clearing and settlement infrastructure will make it easier for market participants to clear fungibly and settle trades across global markets, helping to provide transparency and lessen systemic risk – important goals in the wake of the recent financial crisis.