LSE and Deutsche Boerse working on common framework for clearing houses’ handling of bank defaults
The London Stock Exchange Group [LON:LSE] and Deutsche Boerse [FRA:DB1] are working on a common framework for clearing houses’ handling of bank defaults, the Financial Times reported.
The newspaper cited two people familiar with the talks who said the LSE and Deutsche Boerse are looking in the long term for customers of the merged group to hold membership of the LSE’s LCH clearing house and its counterpart at Deutsche Boerse, Eurex.
The merged group would advise Eurex and LCH on the procedures for bank defaults, the item said. Banks are typical customers of the two clearing houses, according to the people cited by the newspaper.
Deutsche Boerse and the LSE are in talks with customers and regulators about their plans, one of the people said.
The framework for common procedures for bank defaults and risk management would be a key aspect of the proposed GBP 20bn (EUR 25.30bn) merger of the London Stock Exchange Group and Deutsche Boerse, the item said.
Deutsche Boerse and the LSE have committed to running Eurex and LCH separately, the item said.
The report appeared on page 20 of the UK print edition of the Financial Times on Wednesday, 20 April.
Financial Times