Square Mile under New Threat from Amsterdam
John Eisenhammer Financial Editor, The Independent (London, England)
The Amsterdam Stock Exchange has moved swiftly to exploit the turmoil at its London rival by stepping up its campaign to lure City business on to the continent.
Leading market-makers have just been sent invitations to a high-level dinner at the Netherlands embassy later this month to promote the advantages of the Amsterdam Stock Exchange. "They are not hanging around. All the Europeans are dramatically stepping up their efforts to take advantage of the mess in London," said a head of market-making at a leading City investment bank.
The continental moves come as the London Stock Exchange is reeling from the shock-effects of the firing last week of Michael Lawrence, its chief executive. He was ousted after the board said it had lost confidence in his management, amidst controversy over proposals radically to reform the way shares are traded in London.
Michael Cassidy, who heads the promotion of the City at the Corporation of London, sharply criticised yesterday the abrupt manner of Mr Lawrence's dismissal, and the fact that the public row has further undermined the already shaken prestige of the Stock Exchange, as well as damaging the reputation of London as a financial centre.
To the City's continental rivals, anxious to make full use of new rules allowing so-called "remote membership" of their exchanges by London-based investment banks, the Lawrence debacle is being seen as a heaven-sent opportunity. The Dutch invitations cap a robust lobbying campaign in recent months highlighting the advantages of using the Amsterdam exchange over London for European shares. New European directives now allow an …
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Publication information: Article title: Square Mile under New Threat from Amsterdam. Contributors: John Eisenhammer Financial Editor - Author. Newspaper title: The Independent (London, England). Publication date: January 9, 1996. Page number: 17. © 2009 The Independent - London. Provided by ProQuest LLC. All Rights Reserved.