Breaking News from CNBC's Maria Bartiromo: NYSE Has Had Discussions with CME, May Have Accelerated ICE Deal
WHEN: TODAY, THURSDAY, DECEMBER 20TH
WHERE: CNBC'S "SQUAWK ON THE STREET"
Following is the unofficial transcript of breaking news from CNBC's Maria Bartiromo. All references must be sourced to CNBC.
MARIA BARTIROMO: THIS IS REALLY PLAYING OUT INTERESTING. I HAVE LEARNED THAT THE NYSE EURONEXT HAS HAD INFORMAL DISCUSSIONS WITH THE CME GROUP AND THOSE DISCUSSIONS MAY HAVE ACCELERATED THIS DEAL WITH ICE. THE QUESTION MARKET PLAYERS ARE ASKING NOW IS WILL THE CME GROUP COME IN AND TRY AND BREAK THIS UP. MY SOURCES ARE TELLING ME NO. IT IS UNLIKELY THAT ANYBODY ELSE COMES IN HERE AND THE REASON IS BECAUSE OF ANOTHER DEAL THAT WAS DONE TODAY WHICH IS REALLY NOT BEING TALKED ABOUT. AND THAT IS THE CLEARING AGREEMENT BETWEEN ICE AND NYSE EURONEXT. BASICALLY DUNCAN NIEDERAUER HAS BEEN AFRAID THAT HE WOULD HAVE ANOTHER FAILED DEAL ON HIS HANDS. AFTER REGULATORS BLOCKED THE DEAL WITH DEUTSCHE BOERSE. SO WHAT MADE THIS DEAL POSSIBLE IS THE FACT THAT THERE IS NO OVERLAP HERE. THE NYSE DOES NOT HAVE A CLEARING BUSINESS IN EUROPE AND ICE DOES NOT HAVE AN EQUITIES BUSINESS. SO THIS DEAL WILL LIKELY GO THROUGH ON THE PART OF REGULATORS. BUT NOW WITH ICE THE TWO HAVE AGREED THAT THE ICE WILL CLEAR FOR THE NYSE IN LONDON FOR THE EUROPEAN FUTURES AND DERIVATIVES BUSINESS. THE LIFFE BUSINESS OF COURSE AS YOU KNOW CARL IS WHERE THE MONEY IS AND THAT'S REALLY WHAT THE JEWEL OF THIS DEAL IS. SO WITH THIS IN EFFECT DUNCAN NIEDERAUER DOING THIS DEAL HAS BASICALLY LOCKED IT UP. PUTTING A LIMIT ON ANY OTHER PLAYERS COMING IN AND WANTING TO PAY UP. BECAUSE NOBODY IS GOING TO COME IN AND TRY AND BREAK THIS DEAL UP BECAUSE OF THE CLEARING BUSINESS. ITS CLEAR THEY WON'T BE ABLE TO BREAK UP THE CLEARING AGREEMENT WHICH IS IN PLACE AND MAKES TRYING TO BREAK THIS DEAL UP WAY TOO EXPENSIVE FOR ANYBODY ELSE. NOW SOURCES HAVE MENTIONED THE CME TO ME AS WELL AS THE HONG KONG EXCHANGE AS PLAYERS WHO MAY WANT TO TRY AND BREAK THIS UP. BUT AGAIN MY SOURCES SAY NO WAY THEY ARE GOING TO DO THAT BECAUSE OF THIS CLEARING AGREEMENT THAT HAS BEEN DONE AND IS IN PLACE.
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