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Duncan Niederauer, NYSE CEO, at the Davos World Economic Forum, on the stock exchange's potential deal with Deutsche Boerse, and why all is not lost f...
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This once again live from Davos Switzerland with another big interview -- -- The executive chair of Google talking about is his most admired company there and that would be apple -- thought it might save face but no we know that there are big battles with FaceBook.
But let's talk about another huge battle we're joined now by the head of the New York Stock Exchange -- SE Euronext.
Duncan Niederauer is it different feel this time around because you are fighting tooth -- -- for the merger with the Deutsche Boerse and it doesn't look good at this point.
Certainly if you're -- realist he would say when the competition commission in Brussels is appearing to recommend a prohibition.
You're already in the minority in terms of the likelihood likelihood -- a good outcome but we're not giving up have we remind ourselves this is a collegial decision.
We continue to think it's really important for Europe and we believe that if everyone just sticks to the facts we still have a chance in the last ten days here to turn this around.
So the deal is not dead between you and the -- forced emerge by no means them well that was.
The European regulators may have pretty clearly they didn't say no right out I believe February 1 -- the day.
What could be your one element that could get this to turn from but this doesn't look good to -- yet.
-- so the way you have to think about it is as -- -- certainly were -- -- we know origin but we're just not hopeless right so.
And I think what can happen between now and then is remember that's that's one commissioner's decision and yes that is his portfolio and it appears she's likely to recommend to the other commissioners.
In what is meant to be a collegial decisions.
February 1 where there's a chance for input dialogue debate etc.
And I think what we're saying we said publicly.
Is if the prohibition is based on a very narrow definition of the market that says unlike everything the commission is set for the last three years it turns out the markets are global.
-- OTC isn't connected to the exchange traded market again in the entire contradiction everything the commission is set.
Then we think other commissioners would be sympathetic to say way to make your prohibiting the deal with this very.
Contrived narrow definition I think we saw the chance can you assess it.
Why did everybody get hit history tells us -- if you get this far and that competition commission is recommending no.
You're in the ten to 20% category the only reason I think we have a slightly better chance -- that is we're not talking about two.
Run of the mill companies merging these are assets that matter to senior policy makers in these countries so.
You know might there be a chance that they have an opinion given how important this deal could be for Europe sure of but you don't you don't wanna be unrealistic -- let.
They play devil's advocate the way they might see it sure.
You merge with Deutsche of course it's a gigantic exchange linking up with the gigantic exchange crush competition it's not fair right.
-- you you've been spending some time with them clearly the thing -- -- a.
I think -- I think -- so what's happening is.
Point number one they say they have competition concerns.
We have no overlap.
In the interest rate derivatives market that's under review here we do not think the same products the two exchanges is very similar to the CME CBOT deal.
I think it would be a nice regional champion for Europe.
And I think in terms of the other fears that I've heard expressed about our.
Prepare our potential dominance of the OTC market I want to be very clear.
The new co would have 0% market share in OTC clearing that is dominated by LCH -- swap clear unit.
There is no rational reason why the banks would move that to a clearing house which they don't control -- govern nor would I expect them to do so I think some of these fears are exaggerated.
And in fact there is no overlap so I don't know how it changes -- At times when there are attempts have been failures that at big mergers like this the guy who is at the -- what do.
Loses its stance with the board yet if that happens.
If it I don't think so I don't want -- -- go any further than that but I think the board realizes that we've done everything we could have if the deal ends up getting prohibited.
They contract market definition the bears no semblance to reality and also is contradictory -- everything the commission -- said.
It's hard to lay blame I feel I feel responsible because this was my idea and we did -- the last year working on it.
So sure that's a conversational I would supported more importantly that's what the shareholders -- -- put an outright rejection of the deal means for global markets.
A lot of people -- that this week because if you think about it.
2011 was the year that that an industry that should consolidate.
Tried to re in -- on the journey that I think was took a break after the crisis.
And if this one is also blocked for whatever reason and I you can tell I disagree with the thinking on this but.
-- be the third transport you know transformational.
Cross border deal in the industry that for whatever reason didn't get to the goal line.
So I think the -- we have to take a step back and say okay maybe the world trying to tell us that.
This inevitability is on hold for longer than we thought.
And if I were a shareholder in another CEO came up with a great transformational idea I think the shareholder base should be expected to have a lot more question.
Because it's against the last three haven't worked.
What's different about this.
So let's -- That you're you're you're vicious competitor over at the NASDAQ you know they both had -- rejected or at least attempted acquisitions.
Now -- -- both trying for FaceBook is a listing.
What are the chances you can.
I wouldn't speculate -- that either but I think you know who who would want to have a great company like that in your business community.
And we're gonna give it our best shot as we always do I think the listings businesses competitive we think we've got the right value proposition for every company and we're -- we're gonna do our best.
Duncan Niederauer the head of -- nice.
Patrick had exactly how to make it all -- to the new York stock and looking -- to mutual respect -- I'm not sure that's going.
Thank you so much we so appreciate you joining us here and don't miss the next hour we have London mayor Boris Johnson I guarantee you -- he's such character but.
He's such a character and Smart character in that he is working the London Olympics coming up this summer.
To glean the most of revenue a lot of other interviews coming up we have Russian banker of the TV -- -- -- witnessing like freeze of Liberty Global he's in the 3 PM along with the head of General Mills so much more -- luck of Cantor Fitzgerald makes a bet on the US dollar once again.
The Smart businessman he's made a lot of money the past betting on the dollar we'll see what he says then.
All that so much more but for now on behalf of my.
-- us based in New York based crew and Chicago as well here at Fox Business we sign off live from Davos back to you and.
