The London Stock Exchange’s (LSE) €21 a share bid for LCH.Clearnet has been approved by the clearinghouse’s board, Financial Times reports. The board rejected derivatives post-trade company Markit’s €12 a share offer. The LSE’s offer will be submitted to LCH’s 98 shareholders, 87 percent of which are market participants such as banks. The purchase of LCH, which owns over-the-counter (OTC) swap service Swapclear, will help the LSE tap regulatory shakeups in the U.S. and Europe designed to force the vast OTC markets to use clearinghouses, adds Reuters.

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