Deutsche Börse’s planned deal to buy NYSE Euronext may face opposition after the European Union’s antitrust chief said he was not in favor of the business model both companies operate, Financial Times reports. Joaquin Almunía, EU competition commissioner, is concerned about the “vertical silo” model, an industry term that refers to an exchange that controls both the trading of derivatives and the clearing of them. It could give exchange operators the authority to block competitors and keep lucrative contracts and revenue in-house. Deutsche Börse, via its Eurex clearing house, and NYSE Euronext, with its Liffe London futures exchange, both have vertical silo. The German and U.S. exchange groups have agreed to a $25 billion all-share merger.
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