Corporate banking 'does not support regional stock exchanges'

Corporate banking groups are unlikely to support the establishment of regional stock exchanges within the UK, according to the results of a report published today (September 2nd).

The Chartered Institute for Securities and Investment revealed 76 per cent of those working in the financial services sector are not in favour of the plans, which the government proposed as a way of encouraging investment in regional businesses.

Those in corporate banking might feel the advent of online trading makes physical location irrelevant and should not be a barrier to companies in other parts of the country making money on the London Stock Exchange.

Comments on the plans included: "We have already merged national exchanges into transnational exchanges, why would we need regional exchanges?"

And one respondent argued the idea is "from another age of investments buying".

Bloomberg reported today the MSCI Emerging Markets Index is valued at 14.1 times reported profits and 1.9 times net assets, compared with ratios of 14.9 and 1.7 for the MSCI World Index.

This could mean speculators choose to look further afield for investments, rather than focusing on domestic markets.  ADNFCR-2318-ID-800049185-ADNFCR