Deutsche Börse and CME Group Walk Away From Merger Talks

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By Douglas A. McIntyre Updated Published
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Deutsche Börse and CME Group Inc. (NASDAQ: CME) talked about a merger of the two big exchanges, and then apparently they did not. The consolidation of the sector has left some exchanges feeling small compared to the newly created giants. Managements of the two exchanges must have believe that they can make it on their own.

The Wall Street Journal reports:

The discussions, which haven’t progressed into formal merger talks, illustrate the pressure on exchanges to expand by fusing their operations following a multiyear slide in trading activity.

It also reflects the stepped-up challenge to CME as rivals forge deals to create stronger competition to the Chicago-based company.

Deutsche Börse said in a statement Monday it isn’t in merger negotiations with CME Group and is focused on “organic growth.”

A spokeswoman for CME declined to comment.

In December 2012, the boards of both IntercontinentalExchange Inc. (NYSE: ICE) and the NYSE Euronext Inc. (NYSE: NYX) approved a merger of the two exchanges.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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