A moment may have been reached with the decision of Europe’s competition commissioner, Joaquin Almunia, to block the proposed tie-up between Deutsche Boerse and NYSE Euronext.
The two groups have failed to persuade Mr Almunia that Europe needs its own champion as a counterweight to the US derivatives giant, CME Group. In spite of their frantic lobbying, and the offering of escalating concessions to address the many competition concerns, the commissioner has stood firm. The battle may not be over. The full European Commission has to decide whether to accept Mr Almunia’s advice. But the likelihood of it clearing the deal in the face of his submission must be seen as slim.
This seems the right result. While there is a case for creating a pan-European exchange, it was always clear that safeguards would be needed to make any deal palatable to users as well as providers.