UK: Rule change raises stakes in LSE-Deutsche Boerse merger

A tweak to new market rules has raised the stakes in the London Stock Exchange’s bid to merge with its German rival Deutsche Boerse.

Analysts said the decision by the European Securities and Markets Authority to bring forward rules on open access puts further pressure on Deutsche Boerse to seal a deal.

Under the long-awaited rules, known as Mifid 2, market operators must allow access to trading and clearing to anyone above a certain size, rather than force clients to buy bundles of services or keep certain markets as a monopoly.

Regulators were originally willing to give a 30-month delay for exchange-traded derivatives, after several operators raised concerns that an end to the “silo” model would worsen risks in their markets.

However, ESMA has now said the rules should come in for all in 2018, providing the European Parliament and Council both agree.

“Strengthening competition and choice between venues and [clearing houses] is an important step to further the integration of the EU’s capital markets,” said Steven Maijoor, chair of ESMA.

Full content: Telegraph

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