This looks like a sign of weakness by London in several respects -
1) it has abandoned its billion pound computerised book-keeping system a mere few years after starting it, in favour of the German system
2) although this preserves current business in London, the Frankfurt market will specialise in the newer instruments in which trade has been expanding.
3) clearly both exchanges feel under pressure from new internet trading systems, including Nasdaq. Nasdaq is said to be part of the deal. But the fine print will presumably show that this not to its disadvantage.
So has London preserved its position or been forced to retreat?
How will we tax and control these international electronic systems?
Chris Burford
London