FIA EPTA Expresses Concern Over NYSE Euronext-Deutsche Börse Merger

The Futures Industry Association (FIA) has requested a dialogue with regulators and concerned parties over the proposed merger of NYSE Euronext and Deutsche Börse. The industry group says that the market power of the new entity should be mitigated where possible in the interests of a free and open market.

The FIA released its request through its European Principal Traders Association (FIA EPTA) arm, which has been recently formed and is active in debating current regulatory changes. The body stresses that it is broadly supportive of the merger, but notes that the new entity would have a near-monopoly over European exchange-traded derivatives, as well as a "virtual silo in pre-trade (co-location) as well as post-trade facilities".

"We would welcome a dialogue with the relevant competition and regulatory authorities as well as the merging entities on a number of issues that arise from the proposed merger," FIA EPTA says in its release. "Including a competitive central counterparty environment, fair and reasonable access to market data and co-location facilities, continuation of IT innovation and an examination of the basis for licensing of indices."

Highlighted areas of concern include cash equities clearing, derivatives clearing, the concentration of index products and licensing, the provision of market data, and the provision of an innovative trading infrastructure.