By combining Liffe with its own London business that helps clear derivatives trades, ICE hopes to provide tougher competition to the CME Group, the owner of the Chicago Board of Trade and America's largest derivatives market. ICE is also betting it can benefit from the increasing regulatory pressure for all derivative trades to be moved onto exchanges.
"It shows that people want access to the European derivatives market and you get that through London," said Peter Lenardos, an analyst at RBC Capital Markets.
ICE founder and chief executive Jeffrey Sprecher said that the company intends to float the various European stock exchanges it acquired as part of the deal. There is speculation the London Stock Exchanges are among the companies that may examine a possible bid for the European bourses. Mr Sprecher will be chief executive of the combined group, while Duncan Niederauer, the chief executive of NYSE, will be president. The deal will need approval from regulators.
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