LSE-DB merger

The European Commission was informed of the proposed tie-up between the London Stock Exchange (LSE) and Deutsche Börse (DB) on 24 August, after shareholders of the two exchanges voted in favour of the deal. This triggered an initial investigation by the Directorate General for Competition, which sent out questionnaires to stakeholders, associations and businesses.

Responding directly and via Paris Europlace, AMAFI offered input based around the terms of reference laid down by its Board in April (AMAFI / 16-20).

AMAFI stressed the challenges associated with the acquisition of a dominant position in specific market segments, such as clearing or indices, highlighting the risks for users in terms of innovation and costs. It also pointed out that the draw of such a powerful grouping for major issuers could disrupt other market platforms, which would be detrimental to the small businesses financed by these platforms, at a time when the market’s ability to finance such companies is becoming increasingly critical.