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Germany: Regulator casts doubt on LSE-Deutsche Börse merger

By  |  June 28, 2016

The head of Germany’s financial regulator has raised fresh doubts about the planned merger of the London Stock Exchange and Deutsche Boerse, saying he could not see Britain hosting the group headquarters or its euro-based clearing business following the Brexit vote.

“Without doubt … it is hard to imagine that the most important exchange venue in the eurozone would be steered from a headquarters outside the EU,” said Felix Hufeld, who leads Bafin. “There certainly has to be an adjustment here.”

Mr Hufeld said euro-based trading could be processed in Frankfurt, where Deutsche Boerse and the ECB are based, and where the European Banking Authority could move once it shuts its London headquarters.

Britain won a court ruling last year to protect its right to clear euro-denominated trades, in the face of protests from the European Central Bank, which regulates the currency. This position of this €2 trillion-a-day foreign exchange and derivatives market is uncertain as the UK prepares to negotiate its exit from the union.

Full Content: Financial Times

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