Two exchanges ruled out of LCH. Clearnet tie-up talks

Marion Dakers
CLEARING house LCH.Clearnet confirmed at the weekend it was in talks about a possible takeover or merger, as confusion reigned over the identity of the interested companies.

The London Stock Exchange ruled itself out of the fight, after earlier reports named the bourse as a contender, while a person close to Deutsche Boerse told City A.M. the firm would play no part in the talks.

NYSE Euronext, which plans to merge with Deutsche Boerse, and Nasdaq have been named as interested parties, but neither has commented on their interest so far. Markit, a financial data firm said to be joining NYSE in its bid, also declined to comment yesterday.

LCH.Clearnet, which was formed in 2003 when London Clearing House and Clearnet merged, said on Saturday that talks about “various proposals” were in an early stage and that no transaction was imminent.

Clearing houses have become more attractive since the US Dodd-Frank Act banned banks from trading certain derivatives directly last year.