Of Special Interest


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6th September 2011

LSE to buy LCH.Clearnet?

The London Stock Exchange Group is reported in talks to buy all or part of LCH.Clearnet. Nasdaq OMX and Markit Group are also said to have approached the group interested in taking a stake. LCH.Clearnet is the clearinghouse leader for swaps and derivatives and more generally would give LSE a significant stake in post-trade revenue.

Regulatory changes requiring many derivative transactions to use clearinghouses make them of much more interest to finance exchanges. In addition the approaches from both Nasdaq-OMX and the LSE are seen as a reaction to the merger of Deutsche Börse and NYSE Euronext in an attempt to gain scale against the new giant in the sector.