By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    architecture House Zero in Austin, Texas, is a 2,000-square-foot home that was built with 3D-printed concrete. Lake Flato Architects
    3D printing promises to transform architecture forever – and create forms that blow today’s buildings out of the water
    April 2, 2023
    CBE considers raising banks' reserve requirement
    Central Bank of Egypt considers raising banks’ reserve requirement
    April 1, 2023
    Banks discuss amending interest rates on their savings, loan products
    Banks discuss amending interest rates on their savings, loan products
    April 1, 2023
    Egypt, EU discuss cooperation in economy, migration
    Egypt, EU discuss cooperation in economy, migration
    April 1, 2023
    Hermes Brokerage tightens its grip on EGX trading in 1Q 2023
    Hermes Brokerage tightens its grip on EGX trading in 1Q 2023
    April 1, 2023
  • Politics
    PoliticsShow More
    Egyptian president Sisi says fight against terrorism not less significant than Egypt's October War victory
    Egyptian president says fight against terrorism not less significant than October War victory
    April 2, 2023
    Syrian FM visits Egypt for 1st time in over 10 years
    Syrian FM visits Egypt for 1st time in over 10 years
    April 2, 2023
    Ramadan fasting is related with leniency in legal system: Study
    Ramadan fasting is related with leniency in legal system: Study
    April 1, 2023
    Egypt renews its support for comprehensive political settlement in Syria: Shoukry
    Egypt renews its support for comprehensive political settlement in Syria: Shoukry
    April 1, 2023
    Ugandan president says peacekeepers will help stabilize eastern DR Congo
    Ugandan president says peacekeepers will help stabilize eastern DR Congo
    March 31, 2023
  • Interviews
    InterviewsShow More
    Developers have to offer innovative products, state should provide more facilities to stimulate industry: Kareem Mamoun
    Developers have to offer innovative products, state should provide more facilities to stimulate industry: Kareem Mamoun
    March 27, 2023
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    Government should help Egyptian arts revive its pioneering role: Omar Abdel Aziz
    March 15, 2023
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    Interconnected healthcare systems in Africa require political will from North African leaders: Amref official
    March 12, 2023
    EGX ready for government’s IPOs programme: Chairperson
    EGX ready for government’s IPOs programme: Chairperson
    February 15, 2023
    British International Investment invests $4.5bn in 700 businesses across Africa: Sherine Shohdy
    February 15, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: No London HQ for Deutsche Börse-LSE after merger
Share
Notification
Latest News
architecture House Zero in Austin, Texas, is a 2,000-square-foot home that was built with 3D-printed concrete. Lake Flato Architects
3D printing promises to transform architecture forever – and create forms that blow today’s buildings out of the water
Real Estate Culture
Succession recap: season 4, episode 1, "The Munsters"
Succession season 4: Powerhouse ensemble drama masterfully sets up series finale in first episode
Lifestyle
Egyptian president Sisi says fight against terrorism not less significant than Egypt's October War victory
Egyptian president says fight against terrorism not less significant than October War victory
Politics Egypt
Syrian FM visits Egypt for 1st time in over 10 years
Syrian FM visits Egypt for 1st time in over 10 years
Egypt Politics
The Secret Behind Lobna Wanas’ Younger Appearance in “Jaafar El Omda”
Cinema Egypt
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Stock Market > No London HQ for Deutsche Börse-LSE after merger
Stock Market

No London HQ for Deutsche Börse-LSE after merger

Deutsche Welle
Last updated: 2016/06/29 at 4:26 AM
By Deutsche Welle 4 Min Read
Share
SHARE

In a huge blow to London, Germany has said the city could not host the headquarters of a planned European stock exchange giant after Britain’s exit from the EU. It could also not remain a center for trading in euros.
The German financial sector watchdog, BaFin, said Tuesday it was opposed to a merged company made up of the London and Frankfurt stock exchanges being based in the UK in the wake of last week’s British vote to leave the European Union.

“It is hard to imagine that the euro area’s most important stock exchange would be managed out of a site outside the EU,” BaFin chief Felix Hufeld said on the sidelines of a conference in Frankfurt, quoted by the German news agency DPA. “Adjustments will certainly have to be made in that respect,” he added.

Under their proposed merger, the holding company combining Deutsche Börse and the London Stock Exchange (LSE) is planned to be legally domiciled in London, while the day-to-day running of the separate subsidiaries will be handled out of corresponding headquarters in London and Frankfurt.

The tie-up, which both sides describe as a “merger of equals,” will create one of the world’s biggest stock exchanges. Following the British vote to quit the EU, both exchanges stated that their proposed merger would go ahead.

However, criticism is growing in Germany that the merged company will be legally domiciled in the UK. And there are increasing concerns that opposition to the deal could derail the planned $25 billion (22.6 billion euros) merger.

Deutsche Börse declined to comment, but an LSE spokesman said shareholders would vote on the deal on July 4 and the offer terms were unchanged.

Euro transactions in eurozone

Adding to uncertainty over the City of London’s future, Hufeld said the European Central Bank (ECB) would push for the clearing of euro transactions to move to the common currency area within a couple of years.

Hufeld, who also sits on the ECB’s supervisory decision-making board, stressed that such trading should move to the EU. “I would see this as a significant political goal to think about steps to encourage this. It cannot be politically smart for a significant amount or a majority of euro-denominated trading … to take place outside the European Union.”

Trading of euro-based securities spans trillions of euros worth of derivatives, and a significant chunk of that is currently processed in London, say experts.

In addition to this, there is foreign exchange trading in the currency itself. The Frankfurt-based ECB wants oversight for practical reasons: if any disaster were to hit these markets, it would be responsible for clearing up the mess. When Britain leaves the EU, there is little incentive to keep this business there.

Good for Paris?

Meanwhile, the French capital Paris is gearing up to attract London bankers. Societe Generale’s CEO Frederic Oudea said Paris could benefit as financial institutions based in Britain would no longer have access to European markets as they had before.

Swiss Bankers Association Chairman Patrick Odier also said the uncertainty from Brexit could benefit his members.

“It will … probably make the value of the Swiss proposition – stability, predictability, state of law, strong currency – even more forceful than it was in the past,” he said.

sri/uhe (Reuters, AFP)

You Might Also Like

Egypt, Germany discuss promotion of cooperation in communications, digital transformation

Japan’s Nikkei ends higher, gains capped amid continued concerns over global financial crisis

Al-Mashat participates in meeting on energy, hydrogen cooperation between Egypt, Germany

Egypt should allow more pluralistic views in media: German Ambassador

Germany allocates €41m to rehabilitate Aswan High Dam’s electricity generators

TAGGED: Deutsche Börse, Germany, London, LSE
Share this Article
Facebook Twitter Email Print
Previous Article Damietta Container & Cargo Handling receives four RTG cranes to raise efficiency
Next Article Slight growth in Egyptian exports in 4 months
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

architecture House Zero in Austin, Texas, is a 2,000-square-foot home that was built with 3D-printed concrete. Lake Flato Architects
3D printing promises to transform architecture forever – and create forms that blow today’s buildings out of the water
Real Estate Culture
Succession recap: season 4, episode 1, "The Munsters"
Succession season 4: Powerhouse ensemble drama masterfully sets up series finale in first episode
Lifestyle
Egyptian president Sisi says fight against terrorism not less significant than Egypt's October War victory
Egyptian president says fight against terrorism not less significant than October War victory
Politics Egypt
Syrian FM visits Egypt for 1st time in over 10 years
Syrian FM visits Egypt for 1st time in over 10 years
Egypt Politics
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?