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SGX in talks to buy stake in LCH.Clearnet -FT

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(Globalpost/GlobalPost)

Feb 4 (Reuters) - SGX, the Singapore stock exchange, is in talks to buy a stake in clearing house LCH.Clearnet, the Financial Times reported on Monday citing three people familiar with the situation.

The Asian exchange may participate in the London Stock Exchange Group's purchase of LCH or buy a separate stake, the Financial Times reported.

The three parties are discussing the structure of the deal.

LSE won approval from UK's competition watchdog in December for its planned acquisition of the transatlantic clearing house.

Clearing houses sit between trading firms and ensure trades of securities such as stocks and bonds are completed, holding cash to refund firms left out of pocket by a counterparty default.

http://www.globalpost.com/dispatch/news/thomson-reuters/130204/sgx-talks-buy-stake-lchclearnet-ft