MILAN Dec 16 The London Stock Exchange
will likely finalise its acquisition of clearing house
LCH.Clearnet by the end of March, LSE Chief Executive Xavier
Rolet told Italian daily Il Sole 24 Ore on Sunday.
Britain's competition watchdog on Friday gave a green light
to the LSE's planned purchase of LCH.Clearnet.
The timing of the deal is still unclear, however, as both
parties are back in talks over terms to reflect higher capital
requirements being imposed on exchanges by European regulators
overhauling the financial system after the banking crisis.
"Capital shortfall for LCH is said to be around 300-375
million euros and it could be even higher, this is why we are in
talks to change the terms of the deal," said Rolet, adding he
was confident the deal be signed by the end of first quarter
"We have already put aside the majority of funds we will
need," he added.
Under the deal terms agreed in April, the LSE would buy up
to 60 percent of the clearing house for 19 euros per share.
However it would also have to pay 60 percent of the capital
increase imposed by the European Securities and Markets
Authority (ESMA) to LCH.Clearnet. The ESMA may not finalise its
demands until early next year.