American capitalism may fall under European control in the near future.
Deutsche Boerse AG out of Frankfurt Germany are in serious talks, and jumping over the final hoops and attempting to clear a little more red tape to gain a 60% control of NYSE Euronext.
Regulators are concerned with the amount of influence and control this merger would give to Europe’s lucrative derivatives markets. So concerned in fact, that the deal is in jeapordy of not happening.
All eyes are currently on this deal as it would likely cause many more mergers and acquisitions for additional exchanges globally. This merger, if completed will create a 500lb exchange gorrilla with more than $20 trillion in annual trading volume.
The joining of forces between Deutsche Boerse’s Eurex and NYSE Euronext’s London-based Liffe platforms would corner trading in interest rate, fixed-income, and equity- and index-based products in Europe.
There has been no direct effect on metals as of yet, but our eyes are on this deal.
We will keep you posted.