The DTCC's withdrawal leaves the way clear for a consortium of banks led by inter-dealer broker Icap to make an offer for the London clearer. The 12-strong group is understood to have communicated with the LCH.Clearnet board to say it will be ready to make an offer by the end of May.

Their intervention has finally scuttled DTCC's ambitions to create a cross-border clearing colossus after it initially signed a heads of agreement with LCH.Clearnet in October last year.

In a statement, the company says: "LCH.Clearnet has not agreed on a basis for consummating the proposed merger with DTCC and, after consultation with our Board of Directors, regrettably DTCC sees no choice but to pursue other strategic alternatives to develop seamless transatlantic clearing services to support the needs of our customers and the industry."

The constortium-based bid is understood to have the tacit support of European regulators, who would prefer ownership and oversight of the clearer to remain under EU jurisdiction.