LSE predicts UK equity derivatives surge

Clara Furse, chief executive of the London Stock Exchange (LSE), today warned that stamp duty on UK share trading could increasingly damage London’s competitive advantage in international financial markets and thereby reduce the likelihood of the UK joining the European Monetary Union. As a result, more firms may turn to equity derivatives, an LSE spokesman told RiskNews .

Furse, who was speaking at the Institute of Directors’ annual convention at London’s Royal Albert Hall, noted that the LSE deals with twice as much trading in international equities as Nasdaq, the New York Stock Exchange, Deutsche Börse and Euronext combined.

“In financial markets, trading is increasingly sectoral, and geographic boundaries are becoming less relevant. Equities are managed as a