The Competition and Markets Authority (CMA) opened its investigation into London Stock Exchange Group PLC’s (LSEG) anticipated acquisition of Quantile Group Limited (Quantile) in March 2022.

LSEG is an international financial markets infrastructure and data business which holds a majority shareholding in the LCH clearing house group. A clearing house helps reduce the costs and risks of a transaction between a buyer and seller in a financial market, by standardising the steps leading up to payment.

Quantile also helps financial institutions to reduce risk in transactions, along with their overall regulatory costs, including through specific services such as multilateral compression for financial institutions dealing with derivative instruments.

Multilateral compression providers for over-the-counter interest rate derivatives depend on LCH to help build compression proposals for trades cleared at LCH. The CMA is concerned that after the acquisition of Quantile, LCH could refuse to allow third party compression providers to provide these services. LCH could also provide support to Quantile’s rivals in multilateral compression on worse terms. This could potentially lead to reduced competition in UK financial services, which is a key employer and contributor to GDP.

Following its Phase 1 investigation, the CMA has therefore found that the proposed merger could lead to competition concerns in the supply of this service for over-the-counter interest rate derivatives.

David Stewart, Executive Director of Markets and Mergers at the CMA, said:

‘Reducing risk’ can sound abstract, but it matters – it underpins a range of services, like fixed-rate mortgages, that are vital to consumers. Post-trade services, including compression, are one way of doing this.

After investigating LSEG’s and Quantile’s activities, we are concerned that the planned merger could harm competition between multilateral compression providers. It is vital we ensure that LSEG, as a large and powerful firm in the financial sector, isn’t likely to use its strong market position to stifle competition or restrict innovation.

Unless the companies address our concerns, we will refer the deal to a more in-depth review.

For more information, visit the LSEG / Quantile case page.

For media enquiries, contact the CMA press office on 020 3738 6460 or press@cma.gov.uk.

These appointments take effect from the 3 May 2022 and last for 3 years.

The Committee on Fuel Poverty advises on the effectiveness of policies aimed at reducing fuel poverty and encourages greater co-ordination across the organisations working to reduce fuel poverty.

Following this announcement the chair of the Committee on Fuel Poverty, Caroline Flint, has said:

I am delighted Liz, Belinda and Anthony will be joining the Committee on Fuel Poverty. The variety of skills and experience they bring will inform and enhance the work we do to examine the impact of government’s Fuel Poverty strategies and make recommendations.

As energy prices rise and the wider costs of living impacts many more families, the Committee on Fuel Poverty must continue to be a strong voice for those living in fuel poverty. I look forward to working with our new members to address these challenges and advance the work to make homes warmer at a price that is affordable.

Liz Bisset

As a previous member of the CFP (1 December 2016 to 30 September 2020), Liz Bisset oversaw the research on the impact of Minimum Energy Efficiency Standards in the Private Rented Sector.

Liz currently works as Vice-Chair for a Housing Association and is actively engaged in debates around the timing and effectiveness of technological developments to reduce carbon emissions and address fuel poverty. She is also Director of a Housing and Leadership consultancy providing strategic analysis and leadership support to local authorities.

Liz previously worked as Executive Director at Cambridge City Council where she was responsible for delivering front line public services and wider community and stakeholder engagement, including creating an in-house housing development function that went on to deliver low carbon and zero carbon affordable homes within Cambridge.

Belinda Littleton

Belinda Littleton works for National Grid and is currently Head of Asset Management, Light Current, Electricity Transmission. Belinda’s work at National Grid has included:

• leading a team of specialists to deliver appropriate system upgrades that provide value to the consumer during the clean energy transition
• focusing on enabling a net zero future that doesn’t leave anyone behind
• setting out the National Grid’s strategic perspective on the decarbonisation of transport

Previously working as an economist at Ofgem, Belinda looked at the impact of the smart meter rollout on vulnerable customers.

Belinda has also previously worked at PwC. During this time she worked with the former Department of Energy and Climate Change to develop their Household Energy Efficiency Strategy considering the carbon reduction contribution that could be made by households.

Belinda is passionate about designing inclusivity into future policy that delivers against net zero commitments within the UK.

Anthony Pygram

Anthony Pygram was the Director of Conduct and Enforcement at Ofgem (where he oversaw the development of Ofgem’s Consumer Vulnerability Strategy). He was subsequently a specialist adviser to the House of Lords Industry and Regulators Committee for its Ofgem and net zero inquiry. Anthony’s focus was on the consumer and structural issues around the transition to net zero, including the impacts of paying for the transition primarily through charges to billpayers.

Anthony is a Lay Member, and Alternate Chair, of the Regulatory Board of the Institute of Chartered Accountants of England and Wales, the independent Chair of the Code Change Committee for the non-household water market, and will soon be a senior manager at the Payment Systems Regulator.