CME Group Making Bid for NYSE?

Monday, February 14th, 2011

The buzz in the financial world lately has largely been centering on the anticipated merger between Deutsch Börse AG and the New York Stock Exchange’s Euronext, but according to reports today there might be another potential bidder in the market. CME Group Inc., a major owner of derivatives and futures exchanges in both New York and Chicago, is reputed to be contemplating making a last minute bid. This report drew on the quotations of several bankers from the group.

The deal between Deutsche Börse and the NYSE is for now still anticipated to go through as early as Tuesday. Deutsche Börse has confirmed it will release the broad outlay of a pact they have agreed upon on this date. Issues of the exact exchange ratio and the premium paid to NYSE are yet to be determined. The Reuters article announcing this merger stated there are still many issues that could derail the merger apart from the potential CME bid. Political issues with the international merger have to be addressed as well as the regulatory and political landscape the deal might confront in Europe.

In the Chicago Tribune’s analysis, the ambition to buy Euronext has never been about stock trading markets and rather about gaining access to profitable derivative markets. The significance of this deal for many economists and finance experts is the declining role of stock trading in the marketplace, and the growing impact of futures and derivatives exchange.

Despite this, analysts have predicted that CME Group may still make a last minute bid or potentially team up with the Nasdaq’s OMX Group to purchase NYSE Euronext. CME has declined to comment on these rumors. Reuters has validated that this is a real possibility and may result in a potential bidding war between the companies.,0,5990058.story


Article by Andrew Timm

The views expressed are the subjective opinion of the article's author and not of

Tags: cme group , derivatives , deutsche boerse , frankfurt , merger , nyse

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