British and German stock market regulators said yesterday that certain key aspects of the proposed merger between the London Stock Exchange (LSE) and Deutsche Boerse need further market consultation.
The LSE and Boerse said the statement was an important step forward, and reiterated that an LSE shareholder vote on the merger will take place on September 14th as originally planned.
British client broker association Apcims, which has asked for the vote to be delayed, said yesterday's regulatory statement still left many questions about iX unanswered.
Market participants worry that iX, with blue chips traded in London, growth stocks in Frankfurt, and small company markets in both countries, will create a regulatory nightmare.
Britain's Financial Services Authority (FSA) and Germany's Federal Securities Trading Supervisory Office (BAWe) said in a joint statement: "The Authorities note that the legal and regulatory requirements governing the scope and level of their transparency arrangements needs further consideration in consultation with market participants."
The regulators stressed that the joint bourse - to be called iX - needed to "take full account of requirements of market integrity and transparency, protection of consumers and investors, and prevention of insider dealing and market abuse".
The LSE needs a 75 per cent majority of shareholders to approve the merger. About a third of the shareholders are Apcims' members and have concerns about regulation, as well as clearing and settlement, and access to trading.
Apcims members discussed the iX merger yesterday and another meeting will be held on September 6th.
"It is helpful to have this joint statement on regulatory issues ahead of the vote on the proposed merger",' Mr Don Cruickshank, LSE chairman and chairman designate of iX said.
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