Exchange reviews rules

THE Stock Exchange yesterday played down suggestions that there were wide differences of opinion among senior officials about the effectiveness of the regulatory rules and powers contained in its Yellow Book.

A spokeswoman confirmed that an informal review of the Yellow Book was being undertaken, with a view to putting out a rewritten set of rules for consultation.

'We are constantly reviewing the way in which we apply our regulations and the sanctions available to us. It is something you would expect us to do,' she said.

The exchange is aiming to make the book more user-friendly and comprehensive. It is believed, however, that the exchange is also looking to see whether the sanctions it has available under the Financial Services Act are sufficient.

However, it would need to clear big legislative hurdles before making any radical changes. Consultations would have to be held with the Treasury and the Department of Trade and Industry.