The regional German regulator responsible for Deutsche Börse has said it could veto the exchange's proposed merger with the London Stock Exchange Group if Frankfurt's financial centre is disadvantaged by the deal.

In a statement sent to Financial News, the Ministry of Economics, Energy, Transport and Regional Development in Hesse, the state that contains Frankfurt, said that it would consider all aspects of the deal, including whether the merger of the two exchanges would hinder the developments of the financial centre in Frankfurt.