London Stock Exchange Group has set a new March 7 deadline to finalise details of a 366 million pound offer to take a majority stake in clearing house LCH Clearnet.
The LSE said on Friday that discussions between both parties continued "to progress well", likely quelling some fears that regulatory demands on LCH to stockpile more capital against its trading activities could dampen LSE's appetite for the deal.
The exchange has already cut its offer price for LCH, amid concerns the new rules could crimp LCH's earnings potential.
The LSE plans to take a 60 percent stake in LCH, which makes money by acting as a middle man in financial trades and guaranteeing to complete deals if one of the parties cannot.
The acquisition will help the LSE diversify from its core equities business into the many debt and currency markets in which LCH operates.
(Reporting by Sinead Cruise, editing by Laurence Fletcher)