The London Stock Exchange's tie-up with the Canadian exchange operator TMX Group will have to be restructured if it is to appease sceptical Canadian regulators, according to a report that further highlights the challenges that await major cross-border exchange deals.

The report, published yesterday by agency broker Instinet, points to the major roadblocks the deal is likely to face and suggests that any attempt to push the merger through Canadian regulators will see the LSE make major concessions and may ultimately require the group to restructure the deal.