Stock Exchange Merger

Euro Clearing May Move to Frankfurt

frankfurt skyline-dpa-Frank Rumpenhorst
The Frankfurt skyline.
  • Why it matters

    Why it matters

    Clearing transactions in euros are mostly processed in London today, but this could well change if Great Britain leaves the European Union. That could impact pending merger between Deutsche Börse and the London Stock Exchange.

  • Facts


    • At least 60 percent of Deutsche Börse’s shareholders have to approve the merger with London Stock Exchange, the exchange announced Monday, lowering the number from an earlier 75-percent threshold.
    • London Stock Exchange subsidiary LCH will likely be forced to move its euro clearing business to the continent thanks to the Brexit.
    • In addition to shareholders, the European Commission and exchange regulators in the German state of Hesse must approve of the merger.
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Deutsche Börse Chief Executive Carsten Kengeter wants to bring the lucrative euro transaction clearing market to Frankfurt if the proposed multi-billion-euro merger with the London Stock Exchange goes ahead, Handelsblatt has learned.

Mr. Kengeter hopes the plans will persuade lawmakers and regulators to back the merger, which would create one of the world’s largest stock exchanges, but also still has to be approved by Deutsche Börse shareholders.

The merger – the third time these two firms have tried to join their operations in the past decade – has been in additional trouble ever since Britain voted to leave the European Union on June 23.

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