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NYSE sells to ICE for $8bn, deal still needs regulatory approval

Thursday, December 27, 2012

Bailey McCann, Opalesque New York: The parent company of the New York Stock Exchange has agreed to sell the exchange to a smaller rival - ICE for $8bn. ICE is based in Atlanta, and is offering a mix of cash and shares to NYSE Euronext,although the deal still needs regulatory approval. According to a report in BBC News if the deal goes forward as currently written ICE will become the third-largest exchange operator in the world.

The offer for the NYSE follows a similar hostile joint bid from ICE and Nasdaq OMX which was blocked by the justice department. This deal signals a coming war for Europe's lucrative derivatives market according to a Reuters account. The deal would give ICE control of commodities and energy on NYSE Liffe, and also gives the firm a significant advantage over Nasdaq OMX and the CME Group in the space. All three companies are working to challenge Deutsche Boerse's control in Europe.

The new derivatives regulations will drive derivatives trades on to clearinghouses and public exchanges - opening up a significant market for exchange operators. With the ICE deal, that company then have a presence in Europe before new regulations take effect, making it harder for companies like CME to gain a strong foothold. Lawyers for the case the sale to move forward given ......................

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