EU: Deutsche Börse LSE tie-up faces deeper probe

Deutsche Börse and the London Stock Exchange Group’s plan to create Europe’s largest exchange group is set to face an in-depth investigation by Brussels following fears that the companies would have limited time to answer authorities’ initial concerns.

European antitrust officials held a meeting last Wednesday with the exchanges outlining market concerns about the deal but the watchdog has not shared its own thoughts, according to two advisers familiar with the discussions. The exchanges will probably only find out close to the end of the EU’s initial investigation on September 28, the advisers said.

The Commission is due to make public its deliberations a few days later and the limited timeframe to offer remedies — if needed — would make an in-depth study inevitable. The Commission said it would not comment on the investigation. The LSE and Deutsche Börse also declined to comment.

The combination would create one of the biggest venues for equities listings and market data, and risk manage more derivatives trades than any other entity in the world. It has already met criticism from some rival European exchanges as well as the governments of France, Belgium, the Netherlands and Portugal.

Full Content: Financial Times

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