London Stock Exchange (LON:LSE) - Regulation risk manageable
Oct 01st 2012 - Edison Investment Research today published a report on London Stock Exchange (LSE.L, LSE:LSE, LON:LSE) entitled "Regulation Risk Manageable". In summary, the report says:
The market was expecting higher regulatory capital requirements for central counterparties (affecting LSE’s Italian subsidiary and its proposed acquisition of LCH.Clearnet), although the recent proposals are somewhat higher than anticipated. In particular, we believe LSE could have to make an incremental cash injection of c £100m in to LCH.Clearnet, easily funded from existing bank facilities. The proposals could also affect treasury income and potentially see an increase in default losses. The final rules have yet to be set, but the impact in 2014 appears manageable.
Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »
