The European Commission’s objections over the proposed merger of the London Stock Exchange (LSE) and Deutsche Boerse have narrowed, according to a statement from both exchange groups.
Both parties confirmed receipt of the Commission’s statement of objections, although said it reflected a “narrower scope of issues”.
Competition regulators have wound down the list of concerns over the potential merger to clearing of derivatives contracts, according to reports.
In September, the Commission began its review of the process and the LSE announced it would look to sell its LCH clearing unit in a bid to ease the regulator’s concerns.
It is understood Euronext are the frontrunners to purchase LCH from LSE and the statement said this process is “making good progress”.
LSE and Deutsche Boerse confirmed plans to merge in February this year. If completed, the merger would create one the largest exchange groups in the world.
Both exchange groups said they would continue to engage with the European Commission and respond to any concerns raised.