Report: NYSE Might Establish Rival to London Stock Exchange

NYSE Group Inc. (NYX) would consider creating a rival London exchange to compete with the London Stock Exchange for new listings, but had also not ruled out bidding for it, the Financial Times reported on Monday.

"There would be two options (if a combined NYSE/Euronext cannot compete for international listings)," the paper quoted NYSE Chief Executive John Thain as saying.

"The first of which would be to set up our own exchange in London. However, I would not rule out the other option (buying the LSE)," he added.

The exchange sector has been swept by consolidation as exchange players look to cut costs in an increasingly competitive and commoditized market and the race gathers pace to create the first transatlantic stock exchange.

Earlier this month NYSE agreed to buy Euronext for around 7.9 billion euros ($10 billion). The deal is expected to close in six months, but has received strong European political opposition, while rival suitor Deutsche Boerse AG has not given up on its own possible tie-up with Euronext.

Some analysts expected NYSE to put a bid in for the LSE after rival Nasdaq Stock Market (NDAQ) saw a 2.4 billon pound bid rebuffed by the London exchange in March before setting about building a 25 percent stake in the company.