The UK should block any attempt by Germany to shift the headquarters of the London Stock Exchange to Frankfurt after it merges with rival Deutsche Boerse, an MP has said.

Deutsche Boerse and London Stock Exchange (LSE) agreed to combine in a $30 billion (€27bn) deal to create a European trading powerhouse better able to compete with US rivals encroaching on their turf.

The London Stock Exchange and German rival Deutsche Borse revealed plans to save more than €448m a year as they agreed a tie-up to create an exchange giant worth more than €26bn.