IntercontinentalExchange struck an $8.2 billion deal to purchase NYSE Euronext, a combination that will propel the commodities market powerhouse into European financial futures but threaten to further reduce the clout of the New York Stock Exchange.The deal will create a new player in global derivatives trading and clearing that would take on CME Group Inc. While the New York Stock Exchange has stood for 200 years as an iconic symbol of U.S. capitalism, it is almost an afterthought in this deal.Atlanta-based ICE said it will try to spin off the Euronext European stock market businesses in a public offering, generating speculation it may eventually shutter the NYSE's trading floor, as well. Profits from stock trading have been significantly eroded by new technology and the rise of private venues run by Wall Street banks and brokers.Analysts said the deal will give ICE a strategic boost with control of Liffe, Europe's second-largest derivatives market, helping it compete against U.S.-based CME Group, owner of the Chicago Board of Trade. Derivatives trading remains quite profitable for the exchanges and new rules coming into play next year will dramatically expand the demand for clearing over-the-counter contracts.
CME Group Inc. (CME Group) offers a range of global products across all asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. Shares of CME fell by 2.77% or $-1.46/share to $51.17. In the past year, the shares have traded as low as $44.94 and as high as $60.92. On average, 1842100 shares of CME exchange hands on a given day and today's volume is recorded at 3379512.
NYSE Euronext is a global operator of financial markets and provider of trading solutions. Shares of NYX traded higher by 33.32% or $8.0145/share to $32.06. In the past year, the shares have traded as low as $22.25 and as high as $31.25. On average, 2618730 shares of NYX exchange hands on a given day and today's volume is recorded at 71811264.
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