Nasdaq Said to Seek Stake in London Clearinghouse

Nasdaq OMX wants to take a minority stake in LCH.Clearnet, the London-based swaps clearinghouse, as the exchange operator heads into another stand-off with its rival, NYSE Euronext.

Nasdaq OMX, which last month withdrew its unsolicited bid for the owner of the Big Board last month in the face of antitrust concerns, is now weighing a deal to partner with the clearinghouse, a move that would increase its international exposure, a person with knowledge of the matter said on Friday.

The talks to tie LCH.Clearnet more closely to an exchange come as regulators in the United States and Europe try to bring more transparency to the huge over-the-counter derivatives market, another reaction to the financial crisis.

Clearinghouses guarantee that trades, once made, are actually settled, ensuring that transactions go through even in the event that a counterparty becomes insolvent.

Nasdaq OMX already operates the International Derivatives Clearing Group, a clearinghouse founded in 2007 that settles interest-rate swaps and various fixed-income derivatives.

LCH.Clearnet said last month that it had “received various proposals indicating an interest in pursuing some form of possible business combination or other cooperation,” without naming the interested parties. At the time, it described the talks as being at a “preliminary stage.” It declined to comment on Friday.

LCH.Clearnet has already been approached by Markit and NYSE Euronext, which would consider a joint bid, a person familiar with the matter said. The Big Board would be the minority partner in the bid, the person said.

On Thursday, LCH.Clearnet and NYSE Euronext extended their clearing arrangements in Europe until mid-2013.

NYSE Euronext’s chief executive, Duncan L. Niederauer, said in a statement Thursday that the clearinghouse was “considering its own strategic options” even as his exchange was finalizing its merger with Deutsche Börse. He noted that “this extension gives both parties the time needed for these strategies to crystallize.”

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