Europe thwarts DB-NYSE tie-up - FT.com The European Commission on Wednesday vetoed the proposed $9bn tie-up between Deutsche Börse and NYSE Euronext, scuppering an attempt by the German and US groups to create the world's largest equity and derivatives exchange. Unveiling a verdict with far-reaching implications for a sector now littered with failed merger bids, Joaquín Almunia, European competition commissioner, said he blocked a "near monopoly" in European exchange-traded derivatives that would stifle competition. IN Exchanges Consolidation Mr Almunia's decision overcame last-ditch resistance from a handful of fellow commissioners, underlining the clout and resolve of a competition watchdog that is overseeing antitrust investigations involving of Google, Gazprom and some of Europe's biggest banks. Speaking to the Financial Times, Mr Almunia dismissed the exchanges" claim that the time had come for the creation of a "European champion" as a counterweight to big US exchanges, saying no industrial policy could tolerate monopolies. There were real problems. This was not patriotic analysis, not protectionist attitudes, not at all," he said. We were looking at how to avoid the creation of a quasi monopoly, regardless of the nationality of the owner. However, one person close to the two companies said they were "seriously considering" appealing the decision. Reto Francioni, chief executive of Deutsche Börse, deplored a "black day" for Europe that blocked Frankfurt's elevation "on an equal footing with the financial giant New York." The combination of the two exchanges would have created the world's largest platform for company listings, the largest derivatives exchange and a group with four times the revenues of the London Stock Exchange. It would also have united the German and US groups" futures exchanges, Eurex and Liffe, handing the companies more than 95 per cent of trading in benchmark short-term interest rates and German government bond futures. Brussels argued that globally, Eurex and Liffe were "by far the largest players" offering trading in European financial derivatives and that "whether the market is global or European, the merger would lead to a near monopoly in this product area." NYSE Euronext said it was disappointed and strongly disagreed with the EU decision, adding it was based on a "fundamentally different understanding of the derivatives market." The Association for Financial Markets in Europe, whose members are banks that are customers and also rivals of exchanges, said the potential benefits of the deal - such as savings in the post-trade process - were "undermined by serious competition concerns." "We believe that the Commission has reached the correct decision," it said. Jan-Michiel Hessels, NYSE chairman, gave his full backing to Duncan Niederauer, chief executive of the US exchange group, despite the failure of the deal. "Not just me personally but the whole board is fully supportive of Duncan," he said. NYSE said it would resume a $550m share repurchase programme after the release of its year-end earnings on February 10. Shares in Deutsche Börse closed up 3.4 per cent at €46.34. NYSE Euronext shares were flat at $26.47 in New York. Shares in the LSE gained almost 3 per cent. Additional reporting by James Wilson in Frankfurt and Telis Demos in New York