FRANKFURT Jan 9 Germany's Deutsche Boerse
has lost its appetite for pursuing Euronext, even
though the operator of the Paris, Amsterdam and Brussels stock
exchanges is back on the block, three people familiar with the
Frankfurt-based company's thinking told Reuters.
Regulatory and technological changes have made it harder to
earn big profits from stock trading, taking the edge off
Deutsche Boerse's decades-long dream of consolidating the
European stock exchange landscape.
Since 2003, Deutsche Boerse made three attempts at combining
with Euronext, all of which proved unsuccessful.
"The attractiveness of the shares trading business has
massively diminished," a high ranking Deutsche Boerse manager,
who declined to be named, told Reuters.
Deutsche Boerse declined to comment.
NYSE Euronext's European stock market businesses is set to
be split off following IntercontinentalExchange's $8.2
billion takeover of Euronext's parent company NYSE Euronext
Shares trading currently makes up only 10 percent of
Deutsche Boerse's earnings before interest and taxes (EBIT), and
margins and market share have suffered due to the European
Union's markets in financial instruments directive (Mifid),
which was introduced in 2007.
Mifid removed an obligation to trade shares only on
regulated exchanges, making it easier for non-exchange
competitors like banks and alternative investment businesses to
muscle in on Deutsche Boerse's market share.