The London Stock Exchange (LSE) has been blasted for being an ‘anomalous monopoly’ following yesterday's embarrassing computer crash.
The LSE was out of action for the majority of Monday on a day when the global financial markets enjoyed a much needed rise in fortunes.
The dominance of the LSE and its effect on UK business has been slammed by PLUS Markets Group, which is home to PLUS-quoted a competitor to the Alternative Investment Market (AIM).
It says that the computer crash which prevented the trade of securities on AIM is a clear indication that competition its parent company is needed.
“London Stock Exchange plc still has an anomalous monopoly, protected under UK regulations, in the trading of AIM shares,” said PMG in a statement.
“When the LSE platform failed on Monday, Official List securities were available for trading on other exchanges and trading venues in a post-MiFID competitive trading environment.
“However, firms were completely unable to trade the most liquid AIM securities, however pressing their clients’ needs.”
Currently there are about only about 90 AIM companies out of a total of nearly 1700 which have elected to be dual-traded on both markets. However PMG says that this ‘monopoly’ is not to be found in other countries.
“As an international centre of equity trading this made London look very parochial and ill-equipped.
“By comparison, in New York if any particular platform fails, there are several other platforms upon which every type of security can be traded.”
© Crimson Business Ltd. 2008