LCH.Clearnet Group has entered into "exclusive" discussions with the London Stock Exchange Group about a possible transaction, the UK-based clearing house said Wednesday.
There can be no certainty that the discussions will result in any transaction, LCH added.
LCH.Clearnet serves a number of major international exchanges and platforms, including the London Metal Exchange and NYSE Liffe, as well as a range of OTC markets. It clears a broad range of asset classes including securities, exchange-traded derivatives, commodities, energy, freight, interest rate swaps, credit default swaps and euro- and sterling-denominated bonds and repos.
The LME announced in May that it was giving serious consideration to the possibility of building its own clearing house, adding that its decision to examine self clearing was driven by "strategic considerations to manage and develop its own clearing services to provide additional benefits to members."
The LME itself revealed last week that it had received several expressions of interest "with regard to potential strategic transactions," adding that its board, which is being advised by Moelis & Co., "will begin a formal process which may or may not lead to an acceptable offer for the company being received."
