The London Stock Exchange is in talks to buy its main clearing house LCH.Clearnet. The deal could snatch the prized European asset from under the noses of data seller Markit and exchange rival Nasdaq OMX
The LSE, which failed two months ago to buy Canadian exchange operator TMX Group , said it was currently in discussions with LCH.Clearnet about a possible deal. It added that the talks were "at an early stage".
The statement came just three months after LCH.Clearnet, which is majority owned by its customers, said it had received approaches about a sale.
The LSE said in late May that it was not in talks with LCH.Clearnet while Markit, an over-the-counter derivatives specialist, and Nasdaq OMX were linked to possible deals.
A takeover by the LSE would make sense for the exchange because it differs from most of its main rivals in not owning its main clearing house and would reposition the British exchange at a time when clearing is a focus for European regulators.
Clearing houses sit in the middle of a transaction, taking on the counterparty risk when two members trade.
