The London Stock Exchange has confirmed that it is developing plans to launch an international board, which will give investors the ability to trade foreign stocks from London.
According to news reports, Tony Weeresinghe, the LSE's head of global market development, said at this week's World Exchange Congress in Madrid that the exchange was seeking “partnerships” with four or five other bourses to trade foreign blue-chip stocks during London trading hours, without a formal listing.
The service would differ from the LSE's International Order Book, which allows members to trade stocks from foreign markets via depository receipts – listed derivative instruments that represent a specific number of shares in an underlying stock.
Weeresinghe, who is also the founder of Sri Lanka-based MillenniumIT, the technology vendor the LSE purchased for US$30 million in 2009, added that the LSE hopes to roll the service out during July or August this year.
The LSE is also planning to expand the range of products it offers with Turquoise Derivatives, a pan-European derivatives market that is scheduled for a full launch on 16 May. The exchange is currently in the process of securing stock index licenses that will enable it to trade derivatives based on indices of and operated by rival venues. The LSE is also pursuing a merger with Canadian market operator TMX Group, in a deal that would create an exchange group worth £4.3 billion (US$6.99 billion). The merger is currently awaiting regulatory approval.