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Friday, June 24, 2011

Antitrust fixes loom as D.Boerse/NYSE vote nears, (NYSE: NYX)

Complex antitrust questions hang over Deutsche Boerse AG (DB1Gn.DE) and NYSE Euronext (NYX.N) just weeks before shareholders must decide whether to endorse a blockbuster merger of the two exchange operators. If investors back the $9 billion deal next month, they will have no further say as the two companies sit down at the bargaining table with European regulators in what are expected to be delicate negotiations through the end of the year. Based on informal discussions so far in Brussels, the exchanges do not expect to have to accept "structural remedies" such as divesting businesses to seal the deal, two sources familiar with the transaction said, though less severe "behavioral remedies" -- on pricing, for example -- may be required. At issue is the strangle-hold Deutsche Boerse and NYSE Euronext would have on Europe's exchange-based futures market and, significantly, on clearing those trades.

NYSE Euronext is a global operator of financial markets and provider of trading technologies. Shares of NYX fell by 1.4% or $-0.46/share to $32.30. In the past year, the shares have traded as low as $26.58 and as high as $41.60. On average, 4756700 shares of NYX exchange hands on a given day and today's volume is recorded at 1236837.



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