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%.
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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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