London Stock Exchange says Brexit may erode trading volume

London: London Stock Exchange Group Plc said the UK’s decision to leave the European Union may eventually damage investor confidence and weigh on trading.
“There is a broad range of possible outcomes resulting from this vote which has created uncertainty in the markets,” LSE said on Thursday in a statement while reporting a gain in first-half profit. “The uncertainty or the outcome may erode investors’ confidence and impact primary and secondary market volumes, assets-based fees and clearing volumes in the U.K.”
LSE is pursuing a tie-up with Frankfurt-based Deutsche Boerse AG, a transaction that’s been shaken by Brexit fallout. Officials in France and Germany have threatened to claw back clearing operations that are central to the acquisition.
The deal is “making good progress” and the work to attain regulatory consents is underway, LSE said.