FOR the chief executives of Deutsche Börse (DB) and NYSE Euronext, this week’s hobnobbing in Davos was strictly business. A $9.5 billion plot to fuse the two exchanges was derailed in early December when European Commission staff revealed they were likely to advise blocking it on competition grounds. The exchanges are lobbying hard to sell something to someone the 27 EU commissioners to snub their staff and approve the deal. A pronouncement is due to be made on February 1st.On the face of it, investors should support the commission’s recommendation to stymie the deal. Its competition wing is mandated to stop mergers that are likely to raise prices, reduce quality or dull innovation. In this case the concern is that the exchanges’ derivatives businesses—DB’s Eurex and NYSE Euronext’s Liffe—would impart over 95% of European trading for some assets. There may also be concerns that a merged exchange would be able to force investors to use its clearing facilities (for which it may possibly ratchet up charges) once trades have been made.But there are reasons to reckon that the deal may possibly be beneficial to investors. Exchanges are platforms on which buyers and sellers can meet, so a lower number of exchanges, which increases the potential for buyer-seller matches, can be better than a fragmented system. In addendum, making all trades on one exchange may possibly lower investors’ costs. This is since some assets (…

Original post by The Economist: Business