LSE rejects Eurex offer and elects to stay put - for now
LCH received shareholder approval for its planned merger
with Clearnet, last week, after succeeding in keeping London
Stock Exchange on board as a customer for at least the next
All of LCH's exchange shareholders and 91% of user
shareholders approved the deal at an extraordinary general
meeting on Thursday, with no votes cast against.
LCH managed to overcome resistance to the deal from LSE,
which had threatened to move its clearing to Eurex. In the end,
pressure from LSE's banking members and a 25% reduction in LCH
clearing charges was enough to keep the full range of stock
exchange business, including the recently-launched EDX
derivatives unit, for the time being.
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