Sir, The London Stock Exchange (LSE) may well become controlled by an American or other foreign company in a few months.
The tentacles of American law already extend widely to controlled foreign subsidiaries and to individuals, especially in Britain. If the LSE is taken over, it is highly probable that extra United States regulations will creep into our own stock exchange rules. Frightened by the threats from US law and economically disadvantaged by extra regulation, companies will look for other exchanges on which to be listed. Our continental and other rivals will benefit at the expense of the LSE, just as we now benefit from the overregulation of the New York Stock Exchange. Similar, but rather less acute, considerations apply to any other foreign takeover.
I believe in a free market in shares, but this is an exceptional case. It is not right that the short-term benefit of a sale by the present LSE shareholders should take preference over a medium and longer-term threat to the City, to the British economy and thence to us all.
Now is the time for the Government, or one of its financial quangos, to make any foreign takeover of the LSE in practice impossible. There must be no delay.
R. M. ROUSE
St Albans