By Dominic Maher, 18 July 2000 00:25
NEWS The London Stock Exchange (LSE) and Deutsche Börse have set aside £8m to help customers migrate to a new trading system when the two exchanges merge. Each of the LSE's customers will be offered a £30,000 cash bonus to help them make the switch to the Deutsche Börse Systems-run trading network, which is due to be completed by December 2001. A spokesman for the LSE said: "The payment is to ensure customers do not incur a penalty when switching over." The LSE claims the fund is based on an estimated changeover cost, and may increase or decrease as the live date approaches. He added: "The two systems have been developed by the same developers and have similar functionality. There will not be a big cost to move over." But according to Justin Urquhart Stewart, corporate planning director at Barclays Stockbrokers, £30,000 per customer is insignificant when faced with a switch to the newly named iX-international exchange. He said: "It will not be enough to influence system planning." Urquhart Stewart claimed some brokers may not use the new trading system at all, and instead will go directly through the market makers. Meanwhile, negotiations are also underway for Nasdaq to join the two European giants in building a global exchange. Milan and Madrid are also reported to be waiting in the wings to join once the LSE/Deutsche Börse merger is complete.
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