Deutsche Börse Plugs Frankfurt Clearing Ahead of LSE Merger

Deutsche Börse chief executive officer, Carsten Kengeter, is planning to pitch the takeover of London Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term Group (LSE) as Frankfurt’s sole chance of winning a key euro-denominated business, according to sources quoted in Bloomberg today.

Kengeter’s renewed attempts to win over German officials and investors comes amid post-Brexit Brexit Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Brexit stands for British Exit, or in reference to the United Kingdom’s decision to formally leave the European Union (EU) as declared in a June 23, 2016 referendum. In a more immediate sense, a tight vote and unexpected result helped drive British pound (GBP) to lows that had not been seen in decades.The day following the referendum, former Prime Minister David Cameron resigned from office where he was replaced by Theresa May, who later resigned from office on June 7th, 2019. Active Prime Minis Read this Term conflicting opinions between European leaders regarding which city should become the new centre for clearing euro-denominated trades.

Most euro clearing currently occurs in London, but the UK’s departure from the EU has put that business up for the taking with cities including Paris battling to win it.

German officials are against Deutsche Börse moving the headquarters of its holding company to London as part of the tie-up. Kengeter’s pitch suggests that the deal could be crucial in protecting Frankfurt’s existing clearing business.

Finding a compromise on the new holding company’s location may entail establishing the headquarters outside the UK to obtain approval for the merger, or perhaps even creating dual holding companies.

In a near-unanimous vote, LSE shareholders approved the merger on Monday. German Finance Minister Wolfgang Schaeuble said that Deutsche Börse should remain subject to EU rules if the LSE deal goes ahead. The location of the company’s headquarters is less important than where the business operations take place.