For example, research commissioned by major international institutional investors, rated 300 European Union listed companies based on Corporate Governance standards. The results are clear. UK companies have far better corporate governance than their European counterparts. A high quality market and well-governed companies make for a more informed choice by investors, and lower costs of capital. Strategic Issues Let me conclude my remarks with a few words about some strategic issues which currently restrict the ability of companies to attract domestic and international capital.
Stamp duty is an outdated transaction tax that has no place in a modern interconnected economy.
Be assured - the Treasury are clear about our own views on this. The second strategic issue I want to touch on is the need to move towards paperless electronic share holding, particularly in view of the move to three day settlement and the successful introduction of the central counterparty. All of our major competitors have achieved paperless systems while up to half of all UK retail trades still wait for the certificate. Now we know from the mail we receive at the Exchange how deeply attached many UK investors are to the present system. Third, the absence of a single market in financial services in the European Union.