Pan-European exchange Euronext has said that savings in
IT costs from the proposed merger with the New York Stock Exchange
could allow it to cut trading fees by 10% to 15%.
The merger would generate cost and revenue savings of $375m of
which $250m will result from rationalising the combined group's IT
platforms, Euronext said, adding that savings should kick in over
the first two or three years.
Shareholders are to vote on the Nyse offer next month. When the
NYSE announced the “merger of equals” in June this year, dramatic
cost savings through IT consolidation were at the heart of its
plans. However, IT experts have raised doubts about the ambitious
integration timescales.
At the time, TowerGroup analyst Ralph Silva said the IT
integration timetable was extremely optimistic, particularly given
the potential for conflicting regulations and the need to reconcile
different business cultures. “Trading platforms are very complex. I
would have said five to seven years to rationalise platforms was
more realistic,” he said.
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