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