The LSE has an agreement with seven European exchanges in Amsterdam, Brussels, Frankfurt, Madrid, Milan, Paris and Z rich to conform trading systems by November. This is a major step along the road to a pan-European market, promises LSE spokesman Jeremy Hughes. Last year, the LSE and Deutsche B rse, the German stock exchange in Frankfurt, gave their members joint membership of both exchanges. That makes it as easy for LSE members to buy German shares on behalf of clients as UK equities. CrestCo, the company that runs the LSE s electronic share settlement system, also set up links with its equivalent in Germany.
Brokers now pay the same fee to settle German and UK stock.
In time, these links will be introduced by all eight exchanges that are currently trying to ensure their trading systems are identical. That will give UK investors cheap, easy access to shares in each country. But these links are not likely to go live much before the end of 2001, though Deutsche B rse is trying to speed up the process especially now that the exchanges in Amsterdam, Paris and Brussels are discussing a merger. Either way though, UK investors will not have to wait as long for a cheap, convenient pan-European market. Jiway is a joint venture between the Swedish financial services specialist OM Group and Morgan Stanley Dean Witter which will launch in September.