NYSE and Deutsche Borse Chiefs to Discuss Plans to Save Merger

Duncan Niederauer, left, chief of NYSE Euronext, with Reto Francioni of Deutsche Börse, on video, at a news conference in February. Mark Lennihan/Associated PressDuncan Niederauer, left, chief of NYSE Euronext, with Reto Francioni of Deutsche Börse, on video, at a news conference in February.

4:12 p.m. | Updated

The chief executives of NYSE Euronext and Deutsche Börse plan to meet on Wednesday to discuss the next steps in the planned merger of their two companies, as European antitrust regulators take steps to block the proposed deal, according to people briefed on the matter.

The two chiefs, Duncan L. Niederauer of NYSE Euronext and Reto Francioni of Deutsche Börse, will meet in New York as part of a regularly scheduled gathering of executives from both companies, these people added.

For months, the European Commission‘s antitrust office has raised concern about the creation of the world’s biggest stock exchange operator, arguing that the would create a monopoly on exchange-traded derivatives on the Continent. Any formal proposal to block the deal would require the approval of the full European Commission, as well as input from an array of antitrust experts from member nations.

Such a move is likely to prompt public lobbying by NYSE Euronext and Deutsche Börse, which have already extended the deadline for completing the merger in anticipation of antitrust opposition. The two exchange operators still have until about Feb. 9 to change commissioners’ minds.

A spokeswoman for the European Commission declined to comment. A spokesman for NYSE Euronext said in a statement: “NYSE Euronext has not yet received any official decision by the European Commission regarding the requested merger of both companies.”

European antitrust officials, led by Joaquín Almunia, have hinted for weeks that they intended to block the deal unless NYSE Euronext and Deutsche Börse agree to divest one of their European futures exchanges. Together, the two markets, Liffe and Eurex, would control the majority of exchange-traded derivatives trading on the continent.

But NYSE Euronext and Deutsche Börse have argued that the European Commission’s approach ignores the bigger market for derivatives that are traded over the counter. They have also said that within the world of exchange-traded derivatives, the market share of a combined Liffe-Eurex would be 19 percent, smaller than that of a primary competitor, the CME Group.

Neither company is willing to divest either Liffe or Eurex. Instead, they have proposed smaller remedies, including allowing competitors access to the Eurex trading system.