Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Warning over LCH.Clearnet deal

Luke Jeffs
Friday 03 June 2011 00:00 BST
Comments

Leading brokers warned that a takeover of the European clearing house LCH.Clearnet by an exchange will hurt competition.

The Wholesale Markets Brokers' Association, whose members include heavyweights such as Icap and Tullett Prebon, say a takeover would transform the Anglo-French clearer into a for-profit group that would allow shareholders to tap returns previously reinvested in the business or given to members.

LCH.Clearnet, a clearing house that stands between parties to a trade and guarantees obligations in the case of default, operates a not-for-profit model. The group is believed to have been approached by the US bourse giants NYSE Euronext and Nasdaq OMX.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in