21 February 2018
visit www.ebaday.com

IMA chief warns LSE to tread carefully on consolidation

13 July 2006  |  4298 views  |  0 London - Big Ben

In a letter to London Stock Exchange chief executive Clara Furse, the UK's Investment Management Association (IMA) has added its voice to concerns about the possible transfer of regulatory control of the exchange outside the country.

The letter follows remarks made last month by FSA chairman Callum McCarthy regarding a possible transatlantic take-over of the LSE by Nasdaq.

McCarthy warned a new combined entity might seek to achieve further benefits from rationalisation of its regulatory structure and could result in the LSE no longer being subject to UK regulations.

In his letter to Furse, Richard Saunders, chief executive of the IMA, states that the IMA shares McCarthy's concerns, especially as the FSA "plays no small part" in the running of the UK market operator.

Saunders says the IMA would have concerns if the FSA's role and influence were "diminished as a result of encroachment by non-domestic regulatory authorities".

"Additional or onerous regulatory burdens introduced, from another jurisdiction, in respect of companies admitted to trading on the exchange could lead to those companies seeking alternative venues for listing," states the letter.

Saunders says this would create "an undesirable fragmentation of the market".

The IMA says it would also be concerned if any new owner sought to "rationalise its existing business with that of the exchange without full consultation with market participants".

Speaking at the presentation of a set of positive first quarter results yesterday, LSE chairman Chris Gibson-Smith reassured the user community that the business would not be rushed into a merger. "London’s stakeholders do not want a combination of exchanges that might lead to...the import of unsuitable regulations and incompatible market models."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Nasdaq raises LSE stake to 25.1%

Nasdaq raises LSE stake to 25.1%

19 May 2006  |  9548 views  |  0 comments
Nasdaq increases LSE shareholding to 24.1%

Nasdaq increases LSE shareholding to 24.1%

10 May 2006  |  8226 views  |  0 comments | 1 linkedin
Nasdaq raises LSE stake

Nasdaq raises LSE stake

03 May 2006  |  8166 views  |  0 comments
Nasdaq acquires key stake in LSE

Nasdaq acquires key stake in LSE

12 April 2006  |  7532 views  |  0 comments
Nasdaq drops LSE takeover bid

Nasdaq drops LSE takeover bid

30 March 2006  |  7231 views  |  0 comments
London Stock Exchange rejects Nasdaq takeover bid

London Stock Exchange rejects Nasdaq takeover bid

10 March 2006  |  11224 views  |  0 comments
LSE rejects 'derisory' Macquarie cash bid

LSE rejects 'derisory' Macquarie cash bid

09 December 2005  |  8469 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Register for the webinarvisit www.ebaday.comvisit www.swift.com/your-needs/instant-payments

Top topics

Most viewed Most shared
Saudi central bank provides sandbox for banks to try out Ripple techSaudi central bank provides sandbox for ba...
11950 views comments | 16 tweets | 12 linkedin
ABN Amro moves escrow accounts to the blockchainABN Amro moves escrow accounts to the bloc...
9719 views comments | 15 tweets | 13 linkedin
ECB launches staunch defence of cashECB launches staunch defence of cash
9462 views 10 comments | 22 tweets | 26 linkedin
Coinbase and Visa at loggerheads over erroneous charges on customer crypto accountsCoinbase and Visa at loggerheads over erro...
8227 views comments | 13 tweets | 12 linkedin
FCA explores creation of global sandboxFCA explores creation of global sandbox
7480 views comments | 19 tweets | 18 linkedin

Featured job

Six-Figure-Base, Double OTE, Benefits Package
London, UK

Find your next job