The London Stock Exchange is in talks to buy its main clearing house LCH.Clearnet, a deal that could snatch the prized European asset from under the noses of data vendor Markit and exchange rival Nasdaq OMX. The LSE, which failed two months ago to buy Canadian exchange operator TMX Group, said on Friday "it is currently in discussions with LCH.Clearnet regarding a possible transaction," adding the talks are "at an early stage".
The statement came just three months after LCH.Clearnet, which is majority owned by its clients, said it had received approaches about a sale. The LSE said in late May that it was not in talks with LCH.Clearnet while Markit, an over-the-counter derivatives specialist, and Nasdaq OMX were linked to possible deals. A take-over by the LSE would make sense for the exchange because it differs from most of its main rivals in not owning its main clearing house and would reposition the British exchange at a time when clearing is a focus for European regulators.