NMX and CME… makes sense
The merger between NMX and CME makes good sense, simply because CME already handles NMX product via CME Globex platform. The purchase for CME is a good one as it will use an already established platform to take out a lot of NMX’s floor trading expenses.
So, how does this all relate to NYX… cause for the moment, that is what I care about. Well, its good because we know NYX will not enter a complicated earnings dilutive purchase. But NYX is now backed into a corner. NYX needs to buy ICE to compete on the commodities front. NYX already has a position in Europe, thanks to EuroNext, but in the US, NYX is lacking. A purchase of ICE would take care of that hole in its biz.
The NYX/ICE merger would be interesting because NYX would buy an exchange that has a talent for taking market share, and extremely cost contained. Some analyst believe the deal would be immediately accretive to earnings.
I would like to see the deal get done, but when is the real question.
