There is nothing in the proposal of Deutsche Börse

There is nothing in the proposal of Deutsche Börse. "It is by this terse remark that Euronext responded yesterday to the new offer made the previous day by the Frankfurt Stock Exchange. The direction of the Pan-European stock exchange is thus aligned itself with the position of the pattern of the Nyse, John Thain, for which the German proposal is no great change and therefore does not share require an amendment of the terms of his marriage with Euronext.

"Rapprochement with the Nyse remains the most attractive to our customers and our users and the most promising European solution", reaffirmed on rue Cambon, where the new advances of Deutsche Börse leave marble. Yet, if they have not yet met all the requirements of managers of Euronext, is that the Germans have done a number of concessions last month.

Not only, the holding company of the new group will be installed in Amsterdam which he can avoid to be placed under the double regulation of the German BaFin and the Land of Hessen, as well as to accommodate the system of co-management German but general functions will be more all centralized in Frankfurt, as it had been mentioned in the diagram by the Germans in mid-May. Certainly, the German financial capital would still retain directions of development, finance, accounting, human resources and Legal Affairs, what always dislike in Paris. But the General Secretariat and the group information services would be installed in Amsterdam, while Paris would be entrusted with the management of infrastructure, risk management and the power plant purchases.

Concession on NSC

Above all, the responsibility of the shares in the cash market would be clearly entrusted to the French, whose rating NSC computer system should be adopted subject to the green light from the users. Computer activities, they would be divided between Frankfurt and Paris, outsourced in a joint venture created with Atos, which already handles computing of Euronext. "The concession on NSC and computer direction split into two give more flesh to the concept of leadership of cash in Paris", note a party to the record.

German advances also relate to the governance of an organization presented as essentially federal. The new proposal ensures parity within the Supervisory Board of both of the Executive Committee with a President of Euronext and a Director General from Deutsche Börse. "This Presidency is an undeniable step forward, but the question is whether it has the power to decide a tight vote," noted one observer.

Pessimists will object that the Germans have surrendered nothing on the vertical construction of their organization, in which the depository Clearstream continues to occupy an important place. But, according to our information, the discussions that took place this spring between the leaders of Deutsche Börse and of Euronext, they were ready to take the risk to the record in Brussels in the State. Some point to elsewhere that the bulk of the activities of Clearstream are performed on the bond portion. As Deutsche Börse is committed not to export its model in elevator, they do not understand that this could be a fatal barrier.

Germany criticism

Although Euronext continues to see no new element in the German proposal, this is not the case across the Rhine, where those concessions are do so unanimously.

In turn, the Prime Minister of the Land of Hessen and his Minister of the economy are mounted to the niche to notify officials of Deutsche Börse not going too far by selling below the value. Critics relayed by the Chamber of commerce and industry of Frankfurt and the German savings banks, who believe that Deutsche Börse plans to abandon its Xetra electronic rating system a little too quickly.