Anti-trust authorities unlikely to block LSE-DB merger, according to market experts
Market participants have expressed concern
over the proposed merger between Deutsche Boerse and the London
Stock Exchange, arguing that the combination could hurt
competition. While a review by anti-trust authorities could be
the deal’s most significant hurdle, legal experts
tell FOW that regulators may not necessarily block the deal
over competition concerns.
At the centre of the competition concerns
is the combination of the clearing arms of the two exchanges:
Deutsche Boerse’s Eurex Clearing is the largest
futures clearing house in Europe and
LCH.Clearnet’s SwapClear, majority-owned by the
LSE, is the world’s foremost swaps clearing house.
The latter has a near monopoly in European swaps clearing, with
Eurex Clearing the only other CCP to house a sizable swaps
portfolio, an even then only in Euros and Swiss Franc and well
below the levels of OI at SwapClear.
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