is no longer pushing through with its proposed merger with London-based LCH.Clearnet
. The two firms had announced last October that they had signed non-binding heads of terms regarding a proposed merger (see The MFWire,
"DTCC has continually communicated its desire to complete a successful merger to both the management and to the Board of Directors of LCH.Clearnet," DTCC executives said in a news release on Wednesday. "However, LCH.Clearnet has not agreed on a basis for consummating the proposed merger with DTCC and, after consultation with our Board of Directors, regrettably DTCC sees no choice but to pursue other strategic alternatives to develop seamless transatlantic clearing services to support the needs of our customers and the industry."
A 12-member consortium led by Deutsche Bank
is working on making an offer for LCH.Clearnet by May 29, according to
New York-headquartered DTCC has six subsidiaries, including National Securities Clearing Corporation, whose Fund/Serv is the industry standard for processing mutual fund transactions.
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