Deutsche Boerse's chief executive, Reto Francioni, touted the benefits of the proposed merger between his exchange and NYSE Euronext on November 14.
Francioni told attendants at the Frankfurt Euro Finance Week conference that the combination would increase the standing of Frankfurt, and also Europe, among centers of commerce, according to Dow Jones Newswires.
The media outlet reports that he stated in his speech that whereas competition among European exchanges was an important consideration in the past, Frankfurt is now competing against bourses worldwide. He stated that the business units responsible for generating 70 percent of the proposed merger's revenue would be based in the German city.
The two exchanges that wish to combine have implored the European Commission to consider the over-the-counter (OTC) derivatives market when evaluating the potential consequences of the merger. The regulator has not indicated that it will take the market for these OTC financial instruments into consideration, Reuters reports. If the market for these risk management tools is not considered, it will emphasize the dominance of the combined entity in the exchange-traded derivatives market.
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