Photo: AP Images
NYSE-Euronext is being sold to a 12 year-old Atlanta based commodities futures exchange called the IntercontinentalExchange (ICE) for $8.2 billion.The news of a deal broke last night, surprising many on Wall Street who thought all the horse trading between exchanges was over since so many attempts (by Nasdaq, and even ICE) failed last year.
NYSE-Euronext stock surged on the news before being suspended this morning, so it seems the market likes the deal. It is, after all, an attempt by NYSE-Euronext to enter the lucrative derivatives business on top of its traditional stock and stock options trading business.
ICE, on the other hand, is looking at NYSE-Euronext’s European holdings, iconic brand, and listings listings listings.
More pluses: ICE is a leader in electronic trading, but also in financial reform implementation and transparency. That’s a very good thing in a world where the SEC is taking a closer look at exchanges in general.
NYSE-Euronext touches on all these arguments and more in an investor presentation on the deal. You can check it out here.