The financial institutions whose bid for LCH.Clearnet helped derail a similar offer by US clearer the Depository Trust & Clearing Corporation may rue the day they blocked a deal which could have crushed European clearing fees and ensured legal consistency between the US and Europe.

The DTCC said yesterday it was scrapping the plan because six months after it went public the LCH.Clearnet management and board of directors had failed to agree with the DTCC "a basis for consummating the proposed merger".