Press releases 1999

30 July 1999

LONDON STOCK EXCHANGE TO ADOPT NEW STRUCTURE

The Board of the London Stock Exchange today announced the intention to move from its current mutual ownership to a new basis of owning its shares, designed to equip the Exchange's business more appropriately to meet the competitive demands of the electronic marketplace.

The proposal is designed to end the current membership-based shareholding structure and to allow the Exchange's shares to be transferable, ending the traditional link between usage and ownership of the Exchange.

Exchange Chairman Sir John Kemp-Welch said:

"In line with our strategy of ensuring that London's equity markets retain their dominant position, the Exchange has been moving towards a more commercial basis of operations. The time has now come for us to adopt a different ownership structure, suited to the demands of today's increasingly competitive environment. Our objective will be to give long-term value to our shareholders by continuing to provide the most efficient services to our customers."

 

Chief Executive Gavin Casey said:

"For London to stay ahead in today's technology-driven marketplace demands greater speed and flexibility than ever before. To compete on equal terms in today's market, our decision-making processes must be geared to rapid response both to customer demand and changing economic conditions. The new structure will achieve this."

 

The Exchange will appoint advisers and will draw up documentation for consideration by the Exchange's existing corporate shareholders at an Extraordinary General Meeting in the coming period.