The focus of consolidation of European equity
exchanges lies in the triangle of Deutsche Börse, Euronext and
the London Stock Exchange. To the impartial, dispassionate
observer, there might seem little problem with any tie-up
between London and a continental European player. But to those
who work and live in the markets, exchanges, like national
airlines, are a mark of a country's honour and something to be
fought for.
"There is a lot of hubris about all this, there's a lot of
national prestige," says Richard Kilsby of securities market
consultancy Efficient Frontiers, who while at the LSE helped to
establish its Sets trading system. "There is still something about
being the biggest exchange in Europe. It doesn't matter who is the
most profitable."
But the EU wants to free up the ability to trade and the LSE,
being fully listed, remains a potential takeover target for any
acquirer willing and able to...
