NYSE Euronext Deutsche Boerse Merger Would Give CME a Run for its Derivatives Money

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Even if shareholders approve it, the much talked about planned merger of NYSE Euronext and the Deutsche Boerse probably won't happen until the end of this year, says Joe Mecane, Executive Vice President, Co-Head U.S. Cash and Listings for NYSE Euronext.

Speaking today at the Sifma Financial Services Technology conference, Mecane shared with eFinancialCareers that once the shareholders vote next month, it will still need approval from about 47 different regulators and that could take some time.

As for how the merger will impact the market's current structure, Mecane says the primary difference will be in the derivatives area since the Deutsche Boerse has a large derivatives business, which combined with the NYSE Liffe derivative operation, will give the Chicago-based CME Group, currently the world's largest derivatives player, a run for its money.

Although there will be some overlap with the NYSE Euronext Deutsche Bourse merger, and some jobs are expected to be eliminated, Mecane says that in the beginning the job losses will most likely be in Europe.

One thing the merger would do would be to create the world's largest exchange with a total market cap of nearly $24 billion, nudging aside the Hong Kong Exchange which has a market cap of $23 billion, followed by Chicago-based CME Group at $18.2 billion.

This was the opening day for the three day Financial Services Technology conference, which is focused on two major themes: the impact of new regulations coming out of Dodd Frank and how social media is being incorporated into the financial services business.