Niederauer Says Exchange Mergers Necessary to Stem Competition

Exchange companies can either merge or risk being marginalized by competition, according to NYSE Euronext Chief Executive Officer Duncan Niederauer.

“We’re in an industry where scale is essential,” he said in a Bloomberg Television interview today. “It’s an imperative, it’s not going to change, and consolidation is therefore an inevitability.”

IntercontinentalExchange Inc., the 12-year-old energy and commodities bourse, said today it agreed to acquire the owner of the New York Stock Exchange for cash and stock worth $8.2 billion, moving to control of the biggest equities market.

While NYSE’s planned merger with Deutsche Boerse AG was blocked by European competition authorities in February, Niederauer said he expects today’s deal today be approved.

To contact the reporter on this story: Whitney Kisling in New York at wkisling@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.