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.
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