Nasdaq steps up opposition to NYSE-D.Boerse deal: report

FRANKFURT Fri Sep 9, 2011 6:51am EDT

Jan-Michiel Hessels, (L) NYSE Euronext Chairman and Duncan Niederauer, NYSE Euronext CEO, speak to the media following a shareholders meeting at the New York Stock Exchange in New York, July 7, 2011. REUTERS/Brendan McDermid

Jan-Michiel Hessels, (L) NYSE Euronext Chairman and Duncan Niederauer, NYSE Euronext CEO, speak to the media following a shareholders meeting at the New York Stock Exchange in New York, July 7, 2011.

Credit: Reuters/Brendan McDermid

FRANKFURT (Reuters) - Nasdaq OMX (NDAQ.O) has intensified its opposition to the planned tie-up of NYSE Euronext NYX.N and Deutsche Boerse (DB1Gn.DE), saying the deal would "irrevocably destroy" competition in Europe's listed-derivatives market, the Wall Street Journal said.

Deutsche Boerse's planned takeover of NYSE Euronext NYX.N, to create the world's biggest bourse, will likely conclude once the European Commission reaches a decision on its antitrust probe into the new group.

A final decision is expected on December 13, the Journal said.

In a response to the commission, which sought industry feedback for the antitrust review, Nasdaq said earlier this month the new entity would "destroy" competition in derivatives trading and "exploit its dominance" over customers, the paper reported.

Deutsche Boerse said the new combination would still face strong competition in its core area of activity, namely the provision of services for the hedging and trading of risks associated with capital markets.

"The Eurex/Liffe combination will continue to face strong competition from European and non-European exchanges, including CME, ICE, LSE, NASDAQ OMX, other trading platforms, and Over The Counter (OTC)" the Boerse operator said in an e-mailed statement.

"Users of derivatives exchanges are sophisticated players who are flexible enough to switch between exchanges and trading platforms on a global level and to sponsor new trading venues,"

Nasdaq had launched a hostile bid for NYSE Euronext in April, with IntercontinentalExchange Inc (ICE.N), but the pursuers retreated in May after being rejected by the U.S. Department of Justice over antitrust concerns.

Nasdaq could not immediately be reached for comment.

(Reporting by Gowri Jayakumar in Bangalore and Harro ten Wolde in Frankfurt; Editing by Muralikumar Anantharaman and Hans-Juergen Peters)

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