December 14, 2012 / 11:06 AM / 5 years ago

OFT clears LSE acquisition of LCH Clearnet

LONDON, Dec 14 (Reuters) - Britain’s Office of Fair Trading has given a green light to the London Stock Exchange’s planned purchase of clearing house LCH.Clearnet.

In a statement on Friday, the competition watchdog said the proposed tie-up would not threaten rivals through market dominance.

“Following a thorough investigation in which the OFT assessed the parties’ ability and incentive to engage in foreclosure the OFT concluded that there is no realistic prospect of competition concerns arising,” the OFT said.

Clearing houses sit between trading firms and ensure trades of securities such as stocks and bonds are completed and insure against losses if one side of a deal defaults.

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