LONDON STOCK SYSTEM BIG SUCCESS, OFFICIAL SAYS
The restructured London Stock Exchange
has proved itself an unqualified success in less than
six months of operation, according to exchange chairman Sir
Nicholas Goodison.
    More than 95 pct of the business has left the trading floor
and is now conducted in the offices of member firms, Goodison
said in remarks prepared for delivery in New York.
    "Competitive bids and offers can now be seen on screens all
over the country and business done is displayed on those same
screens," he said, reaching more investors than before.
    Goodison said the new system has helped investors by
promoting greater competition that in turn has led to reduced
commissions and spread.
    He said the exchange is now working on a small order
automated execution system and a system to transfer securities
without certificates.
    New laws to be enacted in full later this year will help
the Securities and Investments Board investigate suspected
abuses and punish wrongdoing, Goodison said. He believes it is
a misconception to say that the U.K. system of self-regulation
is not as good as the U.S. system.
    He noted that any violations of the rules are a criminal
offense. "There is no fifth amendment plea to offer a U.K.
inspector hot on the trial of an insider dealer," Goodison
said, in a reference to the U.S. legal system which allows
individuals to remain silent on the grounds that they may
incriminate themselves.
    Goodison said a major goal of the London exchange is to
persuade multinational corporations to seek a listing in
London. He said about 200 U.S. companies are now listed in
London, enhancing their ability to raise capital.
   
 Reuter
