CISI survey shows little enthusiasm for UK regional stock exchanges

Wednesday 01 September 2010

There is little enthusiasm within the financial services sector for Government plans to revive regional stock exchanges, a CISI (Chartered Institute for Securities & Investment) survey shows.

The survey asked whether, in these days of electronic trading, there is a genuine requirement for local exchanges. Of respondents, 76% answered ‘no’ and only 24% ‘yes’.

The Government raised the prospect of setting up exchanges around the UK as a source of investment for business.

Comments from those taking part who see no place for regional exchanges included: “With the emergence of online trading, regional bourses are an obsolete concept” and “they are from another age of investments buying.” A further respondent said: “We have already merged national exchanges into transnational exchanges, why would we need regional exchanges?”

But supporting the proposal, one respondent said: “Why should all financial services be concentrated in the City to the detriment of other regional UK centres? Bring back the regional stock exchanges ASAP, starting with Liverpool which has the greatest tradition of wealth management and wealth creation outside London in the UK.”

Another said: “Local funding will have a positive social impact on the communities in which we live by bringing investment to small businesses that may otherwise struggle to source funding.”