UK policymakers have hit back at German calls to base the merged London Stock Exchange-Deutsche Börse outside London amid looming EU objections to the merged group’s clearing business. Deutsche Börse is facing calls from political factions in the German state of Hesse to move the holding company to the continent because of Brexit. Hesse regulates Deutsche Börse’s Frankfurt stock exchange and has the power to remove its licence if it dislikes the £21 billion deal. Separately, the LSE and Deutsche are due to receive a list of objections from EU competition authorities tomorrow. They are understood to focus on the clearing business but will steer clear of other areas like equities. Members of the Treasury Select Committee and the City of London Corporation canvassed by the Evening Standard said it was essential that LSE and DB stuck to their guns on the London base, which was a key part of the merger agreement. “London has played host to one of the world’s oldest and largest stock exchanges, the level of expertise of which is unparalleled in Europe,” said City of London policy chairman Mark Boleat. “That is why it remains the only option to host the new merger,” he added. Tory MP and former McKinsey consultant Chris Philp, who sits on the select committee, said: “It’s essential the headquarters remain in London, which is the financial capital of Europe. “London is lower tax so it makes sense to have it here.” Another member of the select committee, Labour MP John Mann, said German officials should “pipe down a bit”. “Of course it should be here. It’s always been here, it’s got the history here.” The head of the Christian Democrat Union in Hesse, Michael Boddenberg, said the holding company “must be” in Frankfurt to win approval.
German calls to move the merged London Stock Exchange - Deutsche Börse outside of London have been met with criticism from UK policymakers . authorities in the German state of Hesse are pressuring Deutsche Börse to shift the holding company to the continent in the wake of sanctions . Members of the UK Treasury Select Committee and the City of London Corporation said that LSE and Deutsche Börse should hold firm regarding the London base , a key aspect of the merger agreement . mark Boddenberg , chairman of the Christian Democrat Union in 2014 , said the holding company needs to be in negotiations to win approval .