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New York Stock Exchange open to more deals with European stock markets

New York Stock Exchange open to more deals with European stock markets

The chief executive of the New York Stock Exchange's parent said NYSE Group Inc. is open to adding more European stock markets to its planned merger with Euronext NV. He also signaled the Big Board's interest in the U.S. futures business.
"We are open to adding other cash (equities) markets," in Europe, NYSE CEO John Thain said at a press briefing in New York.
Thain's comments came as speculation continues to swirl regarding the fate of two other European markets _ the stock exchange in Milan, Borsa Italiana, and Germany's Deutsche Boerse AG. The German market has continued to court Euronext, despite the pan-European exchange's merger pact with the NYSE. Thain's comments appeared to leave the door open to a three-way deal between the NYSE, Euronext and Deutsche Boerse's stocks business.
On Tuesday, an article in the French European newspaper Le Figaro stoked talk about the feasibility of a transaction between the three markets. Asked about the article, which dealt with an upcoming report on Euronext's options from French lobbying group Paris Europlace, Thain said a deal that brought a clearing operation or another derivatives business _ both of which Deutsche Boerse has in its stable _ would likely raise regulatory concerns.
But Thain said he was generally receptive to bringing in other cash stock markets under the NYSE-Euronext umbrella. The German exchange in the past has dismissed the notion of that type of deal, and it's unclear whether Deutsche Boerse officials would be more receptive now.
Thain reiterated his notion that consolidation among the world's financial exchanges will produce a handful of global players, while leaving room for smaller trading venues. Thain said he could see markets such as Deutsche Boerse and London Stock Exchange PLC as pieces of global exchanges in the first category.
Separately, Thain was asked about any interest in more U.S. dealmaking. "It would be very logical for us to want to be in the futures business," he said. "Over time, there will be opportunities in the futures markets in the U.S."
Two big futures markets in the United States that have attracted their share of takeover speculation are Chicago Mercantile Exchange Holdings Inc. and CBOT Holdings Inc., parent of the Chicago Board of Trade. Tuesday, a CME spokeswoman declined to comment, while a CBOT spokeswoman couldn't immediately be reached.
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Gaston F. Ceron is a correspondent of Dow Jones Newswires


Updated : 2020-12-04 10:49 GMT+08:00