LSE sees income drop if collateral rules adopted

LONDON -

The London Stock Exchange expects that proposals to tighten collateral requirements will reduce net treasury income in the group's next financial year, the group said on Friday.

However, market estimates for net treasury income in its current financial year ending March 2013 would not materially be impacted, the stock exchange operator said.

The LSE said that LCH.Clearnet, which it is in the process of acquiring, would have to increase its regulatory capital by between 300 million and 375 million euros $385.85 -$482.31 million if the new counterparty recommendations were adopted.

(Reporting by Douwe Miedema; Editing by Steve Slater)