Bosses at the London Stock Exchange have denied its merger with Frankfurt-based rival Deutsche Boerse poses a threat to huge volumes of business and jobs in London.
A report in The Times, based on research commissioned by the German stock exchange, reveals claims that it “has a good chance of winning significant long-term market share in the areas of interest rate and currency trading”.
The risk of substantial trading activities being lost raises “fresh questions about whether the deal, which will have to be signed off by the Bank of England, is in the City’s best interests”, adds the paper.
Following last March’s £21bn “merger of equals”, which will bring together the main stock exchanges in London, Frankfurt and Milan, it was originally thought the greatest regulatory and political hurdles would be faced in Germany over the decision to have the new group’s HQ in London, although Deutsche Boerse shareholders are to control 54 per cent of the combined entity.
In contrast, the report by Dirk Schiereck, chairman of corporate finance at Technische Universitat Darmstadt, says Frankfurt will now enjoy opportunities arising from the Brexit vote in June.
It is wildly feared London will lose its position as the European centre for euro-denominated transactions as a result of the EU referendum result.
Full Content: The Week
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