The London Stock Exchange has agreed to buy LCH.Clearnet, the European clearing house, in a deal worth about €340 million, shaving more than €100 million off the original offer price.
The LSE cut the price for an expected 60 per cent stake in the clearing house because of tough new European rules forcing clearing houses to hold more capital. The LSE had originally agreed to pay €463 million. The deal is due to be finalised in the first quarter of next year. It had originally been due to complete by the end of this year.
The deal will give the LSE its own clearing house as global regulators push for greater use of such institutions to help safeguard the financial system. The bourse will be able to earn profits from fees charged for offsetting the risk in open-ended derivatives contracts, which often have multiyear durations.
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