Deutsche Boerse Reaffirms Plan to Buy LSE After Brexit Vote06.24.2016 By John D'Antona Editor, Traders Magazine
(This article originally appeared on Bloomberg)
Deutsche Boerse AG and London Stock Exchange Group Plc, whose planned combination is among the biggest deals between European companies right now, reiterated that they will proceed with the tie-up despite the U.K.’s decision to leave the European Union.” LSE’s shares slumped 13 percent to 2,375 pence at 8:29 a.m. in London, giving the exchange operator a market capitalization of $12.9 billion. Deutsche Boerse’s stock dropped 7.1 percent to 75.83 euros in Frankfurt.
Review of trading desks found that incoming banks did not yet retain full control of their balance sheets.
UK has a greater market share than pre-Brexit for on-venue execution of GBP interest rate swaps.
Recognition has been temporarily extended until 30 June 2025.
The trade repository has been providing UK services since the first business day after Brexit on 4 Jan 2021.
European firms could operate temporarily in the UK after Brexit while seeking full authorisation.