There was more support for the London Stock Exhange’s announced move to
a computerised order-driven trading system than expressed about the
exchange’s PR performance. Nine of the ten articles to express an
opinion eitherstated that an order-driven exchange is preferable, or
that the new method will successfully operate alongside the existing
system.
Only the Independent preferred the LSE’s unique quote-driven system, ‘it
is nonetheless a sad day for the City for it marks formally the
beginning of the end of its pre-eminent role’.
In opting for co-existence, the LSE was portrayed as trying to balance
competitive pressures from other exchanges, against opposition from
market-making firms. Journalists criticised this balancing act. The
Observer commented, ‘The decision to operate both dealing methods looks
like a poor compromise, while its move to set up a committee to decide
how to best work it, like further procrastination.’ This supposed
indecision may look better in hindsight, after the LSE implements the
new system.
Evaluation and analysis by CARMA International.
Cuttings supplied by Standard Press Analysts
