The London Stock Exchange, UBS and the Investment Management Association (IMA) are among parties that have told UK antitrust authorities they do not object to the merger of BATS Europe and Chi-X Europe, a deal which could create the largest pan-European share trading platform.
The comments came as the UK Competition Commission canvassed opinion from the market as it investigates the deal, which was agreed in February. The planned merger would create both the largest pan-European share trading platform – ahead of NYSE Euronext – and the second-largest venue for trading FTSE 100 shares.
The LSE’s market share of UK blue-chip trading has fallen to about 47 per cent while a combined BATS-Chi-X group would have a share of nearly 40 per cent, according to figures from Thomson Reuters. Turquoise, the LSE’s own cross-border trading venue, has a UK market share of almost 10 per cent. In a written testimony, the IMA, a lobby group for asset managers, said that “if anything we are broadly in favour” as it had been concerned over the long-term financial viability of many smaller venues. “The BATS-Chi-X merger is therefore likely to result in a financially strong and competitive combination”, it told regulators.
The Competition Commission is expected to conclude its investigation by December.
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