London stock exchange plans cross-border trading network
The London Stock Exchange on Tuesday announced plans to create an unprecedented trading network that will allow blue-chip stocks to be traded in up to six countries.
"We're bringing in the concept of an international board. It's a new concept, where we will trade other countries' stocks during London time and we will do it as a partnership," Tony Weeresinghe, director of global development at the LSE told a conference in Madrid.
"This has not yet been done in the world. We're hoping to start it sometime in July or August," Weeresinghe added, explaining that the plan was a response to "a growing need from investors around the world to trade round-the-clock".
He stressed that the ongoing talks with "four or five exchanges around the world" would only be for trading their top blue chips and would not mean listings on several bourses but rather "a partnership in trading".
Weeresinghe, who is also head of Sri Lankan technology firm MillenniumIT -- bought by the LSE in 2009 -- said he was unable to name the other five exchanges involved but promised they would be announced "shortly".
The planned partnership follows news of a planned merger between the London and Toronto stock exchanges, illustrating once again the move towards cooperation, or concentration, among bourses.
Last month the heads of German market operator Deutsche Boerse and NYSE Euronext agreed a deal, to be finalised by the end of the year, which would create the world's biggest exchange by revenues and profit.
Dow Jones newswires contributed to this report
© 2011 AFP