LSE confirms Clearnet interest

The bourse, which recently abandoned plans to merge with the owner of the Toronto Stock Exchange, said discussions were taking place regarding a “potential transaction” but did not give further details.

A reoprt said the LSE’s bid for a majority stake in LCH valued the London clearing house at about one billion euros (£880m).

LCH, which provides clearing and settlement services on financial transactions, including the London Stock Exchange, is more than 80 per cent owned by its bank and broker customers.

It is the exchange’s second approach for LCH this year after a bid in May was withdrawn while the LSE focused on the merger with TMX Group.

A report said consolidation was being driven by the prospect of a merger of Deutsche Borse and NYSE Euronext, which would create the world’s largest exchange and dominate trading in derivatives contracts.

Unlike many exchanges, the LSE lacks its own clearing house for its main share market. However, many market participants are wary of increased exchange power and are keen to ensure that LCH remains free of exchange control, the report added.