Speaking at a joint press conference with Euronext Chief Executive Officer Jean-Francois Theodore, NYSE CEO John Thain said that the NYSE's Arca OX options platform, together with the remnants of the Pacific Exchange's options platform, will be "consolidated with" the faster, leaner Liffe.Connect platform, which handles Euronext.Liffe's products. The merged derivatives platform would be "outsourced to" Atos Euronext Market Solutions (AEMS), the 50/50 joint venture between Euronext and software giant Atos Origin.
"We are pleased to see Euronext, one of our major clients and one of our shareholders participate in the global consolidation of exchanges and we'll be delighted to support all the necessary technology developments,” said Jean-Marc Bouhelier, AEMS chief, in a statement e-mailed to Futures. “We have built over the years a global platform and a track record of integration which will be key assets to support our client."
AEMS owns Liffe.Connect and several other trading technologies, and a spokesperson for the company says the merger will not impede their ability to market the product to competing exchanges.
Liffe.Connect has been licensed to several derivatives exchanges, including the Chicago Board of Trade.
Both Thain and Theodore also hinted at new trading possibilities. "A new range of (derivatives) products will be delivered," Theodore said – with Thain later referring to "transatlantic indices and corporate credit derivatives." Thain also said that the exchanges would cross-sell each other's products, and added that derivatives were a central motivation for doing the deal. "We really do not have a derivatives business," he said. "The combination of the strengths of both of our cash business with [Euronext's] derivatives is one source of strength [for the merger]."
Meanwhile, Deutsche Boerse has issued a statement saying it still has interest in hooking up with Euronext – or perhaps, with NYSE-Euronext?