European regulators have given the go-ahead to the proposed tie-up between Euronext and the New York Stock Exchange. Euronext Chairman Jean-Francois Theodore confirmed he had received approval from regulators in France, the Netherlands, Belgium, Portugal and London. That moves the 10 billion euro transatlantic alliance closer.
When the so-called merger of equals was announced, Theodore said it would simplify systems and reduce costs. He said there would be: “One single trading system, huge economies of scale, more liquidity, one single netting system suppressing risks and reducing margins. All settlements in one single platform.”
Together NYSE and Euronext will trade the shares of companies worth 21,500 billion euros. That is twice the size of the Nasdaq and the London Stock Exchange – which are moving closer towards a merger – and four time the size of the next largest, Tokyo.
This year has been dominated by merger talk between major exchanges. Markets around the world have been under increasing pressure from their investors to consolidate in order to cut costs and increase the speed with which they carry out trades.