LSE Bids for Swaps Clearinghouse LCH
LSE Said to Join in Bidding for Swaps Clearinghouse LCH
Simon Dawson/Bloomberg
An employee passes a sign inside London Stock Exchange Group Plc's (LSE) offices in London.
An employee passes a sign inside London Stock Exchange Group Plc's (LSE) offices in London. Photographer: Simon Dawson/Bloomberg
NYSE Euronext Chief Executive Officer Duncan Niederauer
Jin Lee/Bloomberg
NYSE Euronext Chief Executive Officer Duncan Niederauer said June 1 that he was working with Markit on a bid for LCH.
NYSE Euronext Chief Executive Officer Duncan Niederauer said June 1 that he was working with Markit on a bid for LCH. Photographer: Jin Lee/Bloomberg
London Stock Exchange Group Plc (LSE) is bidding for a majority stake in LCH.Clearnet Group Ltd., the world’s biggest clearinghouse for swaps, according to a person familiar with the matter.
LSE joins Markit Group Ltd., which provides data on swap prices, in trying to purchase the London-based company. Interest in LCH intensified after Deutsche Boerse AG and NYSE Euronext (NYX) agreed to merge in February, creating the world’s largest exchange operator by market value and winning a dominant share of futures trading in Europe. NYSE Euronext Chief Executive Officer Duncan Niederauer said June 1 that he was working with Markit on a bid for LCH.Clearnet.
Victoria Brough, a spokeswoman for London-based LSE, and Andrea Schlaepfer of LCH declined to comment on whether there was a bid.
LSE’s offer values LCH at 1 billion euros ($1.4 billion), the Financial Times reported, without saying where it got the information.
Clearinghouses such as LCH and Eurex Clearing operate as counterparties for every buy and sell order executed by their members, who post collateral, reducing the risk from a trader defaulting on a deal. Exchange operators from New York to Frankfurt and Singapore have sought takeovers to augment equity businesses after regulation and automated trading eroded profit.
To contact the reporters on this story: Nandini Sukumar in London at nsukumar@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
To contact the editors responsible for this story: Andrew Rummer at arummer@bloomberg.net; Nick Baker at nbaker7@bloomberg.net
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