Clearstream Entertaining Bids from Euroclear, Deutsche Boerse

November 1, 2001 ( - Clearstream International, one of Europe's two international clearing and settlement organizations, may sell out to rival Euroclear or to Clearstream's 50% shareholder, Deutsche Boerse, according to a report in the Wall Street Journal.

Last month, in a move reflecting the pressure on securities firms to cut costs associated with ensuring that transactions occur on time, Clearstream told both bidders that it wanted to see their proposals this week.

Industry estimates have put the post-trade costs of a cross-border European equities trade at about 10 times that of a trade within the far larger US equities market, according to the report.

Clearstream’s deadline follows on the heels of London International Financial Futures and Options Exchange’s decision to sell to Euronext NV – showing that the move towards consolidation of Europe’s exchanges is gaining momentum (see European Exchange Consolidation to Continue ).