Banks headed for clash with European stock exchanges

Banks headed for clash with European stock exchanges

Seven world banks take advantage of European rules and reveal plans to form their own stock exchange

A clash is looming between European stock exchanges and the world’s largest
investment banks, after plans were announced today to build a new platform on
which the continent’s companies can trade shares.

The new platform also promises high-speed trading with lower tariffs, the
Financial Times reported.

The controversial announcement comes just as Deutsche
Börse
prepares to withdraw its bid to merge with Euronext, in a move that
could clear the way for NYSE Group’s
agreed bid for the Paris-based stock exchange.

The platform will take advantage of new European rules that take effect next
November, intended to encourage competition and curb the monopoly-like powers of
the traditional exchanges.

The group of banks involved in the new stock exchange – including Citigroup,
Credit Suisse, Deutsche Bank, Goldman Sachs, Merrill Lynch, Morgan Stanley and
UBS – will be shareholders in the new company owning the proposed exchange,
which will also have its own board and executives.

Further reading:

Banks
plan European trading platform

Banking
giants create rival exchange

Banks to
launch EU sharemarket

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