Deutsche Börse has refuted claims made by Hugh Freedberg, CEO of Euronext's derivatives subsidiary, Euronext Liffe, that a merger between the two exchanges would ultimately be harmful for London's futures industry. Meanwhile, Freedberg has confirmed that European Competition Commission has launched a full-scale investigation into potential anticompetitive issues arising from a European tie-up.
"The deal which Deutsche Börse has proposed would see London lose its position as Europe's derivatives capital," Freedberg told FO Week as he went on the campaign trail to whip up support for his exchange.
He explained that among other potentially damaging issues would be the integration of Euronext Liffe's clearing into Eurex's in-house system, taking business away from London-based LCH Clearnet.
"That would have a significant negative impact on the City and obviously on LCH Clearnet itself, which is an integral part of the City's infrastructure," he claimed. "Euronext Liffe generates over £1tr in notional...