Cedel, Deutsche Bourse Clearing Unite, As Others Back Pan-European Efforts

LONDON--In what appears to be a first step towards creating a pan-European stock exchange, two clearing houses have combined forces and garnered the support of another two under a memorandum of understanding (MOU) to form a European clearing house.

Based on the US Depository Trust Co. (DTC) model, Cedel International and Deutsche Borse Clearing are merging to form a new Cedel International. The two will merge clearing, settlement and custody activities.

Cedel International is the European