The owner of the New York Stock Exchange is set to take control of a key scandal-hit bank interest rate. NYSE Euronext has won the contract for setting the London Inter-bank Offered Rate (Libor), a government-backed committee announced. Libor is used to set trillions of dollars of financial contracts.
The European Commission gave unconditional approval for Intercontinental Exchange (ICE) to buy NYSE Euronext for 8.2 billion dollars a deal that strengthens ICE's presence in the lucrative derivatives trading business.
Intercontinental-Exchange agreed an 8 billion dollars deal to buy New York Stock Exchange owner NYSE Euronext, propelling the commodities player into the big league of European derivatives and helping it to take on arch rival CME Group.
Stock markets, shuttered for two days by Hurricane Sandy’s punch ashore, plan to reopen Wednesday. The New York Stock Exchange’s parent company, NYSE Euronext, said trading would commence as usual with a 9:30 a.m. opening bell.
US exchanges Nasdaq and ICE have mounted a 11.3 billion US dollars bid for NYSE Euronext, topping a previous offer from Deutsche Boerse. The bid compares with Deutsche Boerse's offer of 10.2bn.
Nasdaq OMX Group Inc could launch a rival bid for NYSE Euronext to avoid being left on the sidelines, a source said, as traditional exchanges race to merge to see off upstart electronic rivals.
Deutsche Boerse and NYSE Euronext announced Tuesday the creation of the world's largest exchange operator. A key compromise is an agreement to headquarter the combined group in both New York and Frankfurt.
Two of world's leading exchanges, Deutsche Boerse and NYSE Euronext, are in advanced talks about a merger. The deal would create the world's biggest stock exchange firm by revenue and profits and would be jointly based in New York and Frankfurt.