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.
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