On April 1, 2011, Nasdaq OMG Group Inc. and Atlanta-based IntercontinentalExchange offered to buy NYSE Euronext for $11.3 billion (based on $14.24 cash for each share of NYSE and a swap of 0.4069 share of Nasdaq and 0.1436 ICE shares for each share of NYSE as well as the closing prices of the trio on the day of announcement on April 1). The bid is better than a rival bid of $35-a-share offered by Deutsche Borse. The acqusition bid will help Nasdaq expand its stock and option trading platform, and make ICE into world's fourth-largest derivatives exchange by volume compared to its current rank of fourteenth.
Information Based on May 17, 2011
Nasdaq OMG Group and ICE on May 16 dropped the $11b bid to acquire the NYSE as US DOJ's anti-trust division had threatened to block the merger of two powerful US bourse. This clears the way for Deutsche Borse to acquire the NYSE. However, the traditional stock exchanges such as NYSE and NASDAQ are facing increasing competition from high tech exchanges such as BATS Exchange and Direct Edge as they provide better values to investors as transactions can be completed based on the best possible trade prices updated in milliseconds. Moreover, stocks are no more the most preferred vehicle for traders to make money. Instead, derivatives and options trading have become the most lucrative instruments for most of the traders.
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