While the proposed NYSE Euronext-Deutsche Bourse combination faces an uncertain regulatory road in Europe, a positive sign may be the qualified "thumbs up" offered by organizations representing high-frequency traders in Europe.

Brussels-based regulators are taking a systematic approach to understanding the market implications of such a merger, including the delivery of a detailed questionnaire to banks, funds and other companies. The European Principal Traders Association, a lobbying group that includes some of the biggest names in high-frequency trading, has issued a position paper that essentially welcomes the deal, as long as certain issues are resolved fairly, according to the Financial Times.

Most people assume that if the deal is approved, it will carry some stipulations regarding the European derivatives market. But the lobbyists have also raised some other issues, such as clearing and co-location. While the deal will likely lead to some efficiencies that could result in lower costs, it will leave fewer clearing options. As for co-location, regulators must be aware of the trend toward insourcing, which may raise negative implications in terms of costs, the group argues. None of this dispels the notion that the deal will ultimately be approved with some terms attached.

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