NYSE Euronext � Deutsche B�rse Merger: Let the dance go on!

In this new ECMI Policy Brief, Research Fellow Diego Valiante offers his insights into the motivations, potential synergies and implications of the proposed merger between NYSE Euronext and Deutsche B�rse, which he sees as a continuation of the intricate series of dances begun two decades ago between various exchanges worldwide and which now escalates at global level in the non-equity business. The author finds that the liberalization process and regulatory changes brought about by the financial crisis have revived this long-term process. Finally, Valiante points at the importance of following a dynamic approach in the merger test, which would induce the Commission to impose rigorous conditions to clear the deal. In an updated version, the Policy Brief comments on the merits of the competing bid recently launched by NASDAQ OMX and ICE on NYSE Euronext.