Global exchange may open up to small firms

Engineering companies previously excluded from the London Stock Exchange may find it easier to gain access to the proposed global exchange market, according to market analysts. Merger talks between the stock exchange and the Deutsche Borse, have now been extended to the technology-heavy US market, Nasdaq, with the aim of creating a worldwide exchange by […]

Engineering companies previously excluded from the London Stock Exchange may find it easier to gain access to the proposed global exchange market, according to market analysts.

Merger talks between the stock exchange and the Deutsche Borse, have now been extended to the technology-heavy US market, Nasdaq, with the aim of creating a worldwide exchange by 2002.

Brian O’Keefe, engineering analyst at Commerzbank, said the new market would not necessarily mean exclusion for smaller engineering firms. `Nasdaq is easier to get onto, and the new global market could become an alternative to London’s Alternative Investment Market,’ he said.

The AIM is an `incubator’ market set up by the stock exchange to allow companies unable to gain a listing access to investors’ funds.

But the UK Quoted Companies Alliance, a representative body for listed companies outside the FTSE-100, said the merger could push out smaller companies. Alliance chief executive John Pierce said the stock exchange’s focus could shift to the global exchange, and support for smaller companies listed in AIM could ebb away.

A stock exchange spokesperson said AIM would be continue to receive support because it helped smaller companies gain full listing.

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