Press releases 2005

27 May 2005

WHY EUROPE’S EQUITY MARKETS MATTER: CHRIS GIBSON-SMITH HIGHLIGHTS THE ROLE OF EQUITY MARKETS IN EUROPEAN ECONOMIC REFORM

Chris Gibson-Smith, Chairman of the London Stock Exchange, today called for Europe to seize the opportunity for economic reform and to recognise the link between efficient equity markets and an efficient economy. 

In a keynote address to the Federation of European Securities Exchange’s Annual Convention in Brussels, Mr Gibson-Smith said:  “Efficient, flexible markets are essential components of an economy that is able to generate the social benefits that flow from a better allocation of resources and a more effective supply of services.”

Mr Gibson-Smith stated that the primary objective of reform must be to break down national barriers to deliver a more efficient market, in the process creating a larger pool of liquidity that reduces the cost of capital for companies and offers investors greater choice.

Mr Gibson-Smith said:

“We desperately need to allocate capital more efficiently to the most dynamic sectors of the economy – irrespective of national boundaries – especially to the smaller companies that grow faster and add jobs more quickly.”

Mr Gibson-Smith concluded by emphasising that political or regulatory intervention must not stifle innovation or otherwise lead to structures that prevent Europe’s markets from being able to respond to global forces.

For further information, please contact:

Richard Webster-Smith    Press Office  +44 (0)20 7797 1222  newsroom@londonstockexchange.com