EEX bourse requires EU antitrust okay for Nasdaq deal, EU says
Reuters
Published Aug 21, 2023 06:22AM ET
Updated Aug 21, 2023 07:48PM ET
By Foo Yun Chee and Sudip Kar-Gupta
BRUSSELS (Reuters) -Deutsche Boerse's European Energy Exchange (EEX) has to seek EU antitrust approval for its acquisition of Nasdaq's European power trading and clearing business because of its importance to Europe's energy market, EU antitrust regulators said on Monday.
The European Commission, which acts as the competition enforcer for the 27-country European Union, said it had been asked by Denmark, Finland, Sweden and Norway to examine the deal even though the acquisition falls below the EU merger rules on turnover.
Under the deal announced in June, Nasdaq will transfer existing open positions in its Nordic, French and German power futures as well as in European carbon emission allowance futures (EUAs) to EEX's European Commodity Clearing (ECC).
EEX is Europe's leading electricity and natural gas exchange, serving 800 participants.
The Commission said the two companies are the only providers of services facilitating the on-exchange trading and subsequent clearing of Nordic power contracts.
"Such services allow for the use of long-term energy contracts with set future prices and are therefore key for more stable and predictable energy prices, to the ultimate benefit of consumers and businesses," it said in a statement.
"It is therefore important to ensure a strong and competitive trading and clearing ecosystem to support the smooth functioning of energy markets, especially in the current context of energy crisis."
This is the third time that the EU antitrust watchdog has used its power under the so-called Article 22 whereby EU countries can request that it reviews deals which do not meet the merger criteria but can impact their markets.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.