ECB rate cut may hit exchange revenues

Deutsche Börse and the LSE are the exchanges most likely to suffer revenue falls as a result of yesterday's rate cut, say analysts

The surprise decision by the European Central Bank to cut its interest rate to a record low could impact exchange group revenues, particularly those of Deutsche Börse, analysts have warned.

The ECB cut its benchmark interest rate to 0.25% from 0.5% yesterday, which some believe could lead to lower income exchanges earnings from net interest income as well as reduced volumes in interest-rate derivatives trading.

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