The government has been warned that it must “tread carefully” before a debate in which MPs could call for the blocking of the £21 billion merger of the London Stock Exchange and Deutsche Börse.
Andrew Tyrie, chairman of the Treasury select committee, said that the tie-up would require close examination in light of the vote to withdraw from the European Union, with politicians in Germany pressing for the combined group to be based in Frankfurt, not London.
“This is a large and complex deal, the risks and benefits of which are both altered by Brexit,” Mr Tyrie said. “Likewise, instability or fragmentation of the eurozone, were it to occur, would greatly affect it.”
“The biggest benefit would be from cross-country netting and compression and any