The proposed merger between LSE and Deutsche Boerse will mean cheaper trading for retail investors, says one expert.
Gijs Nagel, director at stockbroking firm DeGiro, says the planned merger of the two stockbroking giants will be good for investors.
“The anticipated merger between the LSE and Deutsche Boerse is a great sign for the retail trading community. We expect the combined exchange will make it cheaper for the end investors to trade, as well as seeing a big benefit in terms of price feeds.
“The goal in the retail trading community is the same as the institutional broker industry: become more efficient and with it reduce prices. We believe this merger will have such an impact.
Nagel adds that this is not likely to be the end of the merger activity in indices.
“We expect to see more consolidation amongst exchanges in Europe in the near future and with this retail investors profiting from this trend,” he adds.
The two groups revealed details of the proposed merger last week, saying the joined company will be domiciled in London, with headquarters both in London and Frankfurt, and current DB chief Carsten Kengeter will lead the new firm.
However, Wealth Management Association chief executive Liz Field is not convinced the merger will automatically be good for retail investors.
She says: “The key priority for WMA and its members when there are any proposed mergers or takeovers involving the London Stock Exchange is to ensure that retail clients can continue to trade equities and other listed financial assets as cost-effectively and efficiently as possible.
“We have no reason to doubt that this will be jeopardised if the LSE and Deutsche Boerse were to merge, but we will of course be monitoring any developments closely.”