London Stock Exchange-Deutsche Börse Merger Killed Off by European Commission
European Commission prohibits deal on basis it would create a monopoly for fixed-income clearing in Europe.
The European Commission’s decision on the proposed deal follows LSEG’s February refusal to divest its majority stake in Italian government bond trading platform MTS, a regulated electronic trading platform for European wholesale government bonds and other fixed-income securities.
Asserting that allowing the merger to go through would create “a de facto monopoly” in fixed-income clearing, through the combination of Deutsche Börse’s Eurex business, LSEG’s LCH.Clearnet operations in London and Paris, and the Rome-based Cassa di Compensazione e Garanzia, the European Commission also said the deal would have a “knock-on effect on the downstream markets for settlement, custody and collateral management” and could potentially squeeze Euronext out of the market.
“The European economy depends on well-functioning financial markets. That is not just important for banks and other financial institutions. The whole economy benefits when businesses can raise money on competitive financial markets,” said Commissioner Margrethe Vestager. “The merger between Deutsche Börse and the London Stock Exchange would have significantly reduced competition by creating a de facto monopoly in the crucial area of clearing of fixed-income instruments. As the parties failed to offer the remedies required to address our competition concerns, the Commission has decided to prohibit the merger.”
Following the announcement, Vestager denied that the result of the UK referendum to leave the European Union had any bearing on the European Commission’s verdict to veto the merger.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Agentic AI and big questions for the technologists
Waters Wrap: Much the same way that GenAI dominated tech discussions over the last two years, the road ahead will feature a lot of agentic AI talk—and CIOs and CTOs better be prepared.
Waters Wavelength Ep. 302: Connectifi’s Nick Kolba
Nick joins the show to give his views on trends in the interoperability space and the FDC3 standard.
AI co-pilot offers real-time portfolio rebalancing
WealthRyse’s platform melds graph theory, neural networks and quantum tech to help asset managers construct and rebalance portfolios more efficiently and at scale.
Waters Wavelength Ep. 301: SIX’s Javier Hernani
Javier Hernani, head of securities services at SIX, joins to discuss everything T+1.
Bloomberg debuts GenAI news summaries
The AI-generated summaries will allow financial professionals to consume more data, faster, officials say.
8 bank CTOs and CDOs sound off on artificial intelligence
Waters Wrap: Last year, WatersTechnology spoke with heads of technology and data from a range of tier-1 banks. Anthony pulls at one common thread from those interviews: AI.
Waters Wavelength Ep. 300: Reflecting on humble beginnings
It is our 300th episode! Tony and Shen reflect on how it all started.
An inside look: How AI powered innovation in the capital markets in 2024
From generative AI and machine learning to more classical forms of AI, banks, asset managers, exchanges, and vendors looked to large language models, co-pilots, and other tools to drive analytics.