Brussels has extended its investigation into the proposed merger between the London Stock Exchange Group and Deutsche Börse by a further 15 days, adjusting its timetable to examine a proposed remedy from the exchanges to expedite the deal.
European antitrust authorities will make the filing official later on Friday, according to two sources familiar with the situation. The extra time will allow the European Commission to test the proposal with the market, writes Philip Stafford.
Brussels sent the deal to create Europe’s largest exchanges operator for an in-depth investigation at the end of September. Authorities cited concerns about potential curbs to competition in stocks, futures and repo markets, which provide a crucial source of short-term funding for banks.
To assuage the concerns the LSE has said it would be willing to sell the Paris-based arm of LCH, the clearing house it controls. The business, better known in the industry under its previous brand name Clearnet, clears credit default swaps, repo, equities and futures trades.
A final decision was initially due on February 13 but that has now been put back to March 6, at the request of the exchanges, the sources said.
Clearing, in which a party stands between two sides of a deal and manages fallout if one side defaults, is one of the pillars of global policymakers’ efforts to reinforce markets after the financial crisis.