Stock Exchange climbs down on Internet deals

The London Stock Exchange yesterday made a humiliating climb-down in its dispute with Sharelink, the private client stockbroker, and its partner, Electronic Share Information. After an acrimonious dispute lasting more than two weeks it has agreed to resume the supply of price data for the two firms' share-trading service via the Internet.

The Exchange withdrew its pricing information agreement just as the product was about to launch after telling ESI and Sharelink that it had unilaterally altered the contract.

That decision led to complaints from the two firms who argued that the LSE was exploiting its monopoly powers.

The dispute also led to the Exchange taking the highly unusual decision to issue defamation proceedings against Sharelink's chief executive, David Jones, for comments he made about the affair in a radio broadcast.

Yesterday the Exchange said that it had agreed to withdraw its libel action against Mr Jones and also said that it had decided not to go ahead with any disciplinary procedures against the company which it had earlier threatened.

Mr Jones said yesterday: "Sharelink is pleased that it has been possible to resolve the dispute between the Exchange and ESI. I regret that this has ever become an issue and am happy to join fully in the statements made by ESI. The new Internet service represents an important step forward for the development of the private investor sharedealing and information services."

ESI had asked the Office of Fair Trading to investigate the situation and had several meetings about the matter with OFT representatives. Yesterday ESI said it was writing to the OFT to withdraw its request for an investigation of the Exchange's conduct. Dr Hermann Hauser, founder of ESI, also confirmed ESI had withdrawn its allegations that the Exchange had acted in breach of its agreements with ESI.

In an about-turn from the earlier position, the Exchange's chief executive Michael Lawrence made a statement saying: "The Exchange is pleased to be involved in the development of a service which will increase the range of choice available to private investors."

The Exchange said it welcomed Dr Hauser's statement and said that it had reached agreement with ESI with a view to ensuring that ESI's Internet service could be provided on an on-going basis.

Sources said last week that the LSE had tried to encourage ESI to find another partner other than Sharelink but that this strategy had failed when ESI made it clear that it would stick with its intended partner.

There have been problems in the past between the Exchange and Mr Jones. Last year Mr Jones spent some six months as a board member, during which time it is said there were frequent clashes between him and other board members over strategy. He has since argued that the Exchange has not fully represented the views of the private investor, preferring to concentrate on the demands of the larger institutions.

Meanwhile, APCIMS, which represents private client stockbrokers, said that it had protested to the government about the charging policy issued by Crestco, the company developing the new share settlement system. The group says that every deal of under pounds 4,000 or smaller where investors keep their share certificates will cost more to settle under the Crest system than it does under Talisman, the present Stock Exchange settlement system. It adds that under the new system individual investors will lose out while institutional investors will gain. APCIMS says the cost of an investor keeping his name on a company's register under the new system of sponsored membership looks likely to cost much more than expected. It calls for the new proposed charges to be investigated by the OFT.

Arts and Entertainment
Jake Quickenden and Edwina Currie are joining the I'm A Celebrity...Get Me Out Of Here! camp
Life and Style
videoJapanese prepare for the afterlife by testing out coffins
Arts and Entertainment
Harrison Ford attends Blade Runner at Target Presents AFI's Night at the Movies at ArcLight Cinemas on 24 April, 2013 in Hollywood, California
film... but Ridley Scott won't direct
Hughes is hit by a bouncer from Sean Abbott
cricketStephen Brenkley on batsman's tragic flaw that led to critical injury
Dejected England players applaud the fans following their team's 3-0 defeat


Actress isn't a fan of Ed Miliband

ebooksNow available in paperback
The Bounceway, designed by Architecture for Humanity
newsLondon to add 'The Bounceway' to commuting options
Life and Style
Stefan Gates with some mince flies
food + drink
Arts and Entertainment
Rooney Mara plays a white Tiger Lily in forthcoming film Pan
filmFirst look at Rooney Mara in Pan
Life and Style
Customers browse through Vinyl Junkies record shop in Berwick Street, Soho, London
Life and Style

Do you qualify – and how do you get it?

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

h2 Recruit Ltd: Business Development Manager - HRO - £70k+ ote

£35000 - £450000 per annum + £3k car, £70k ote: h2 Recruit Ltd: Do you want to...

Citifocus Ltd: Newly Qualified Accountants - Risk Mgmt

£Attractive Package: Citifocus Ltd: Prestigious financial institution seeks to...

Citifocus Ltd: Operational Risk Analyst

£Negotiable: Citifocus Ltd: Experienced operational risk professional with ban...

h2 Recruit Ltd: Business Development - Telecommunications - £50,000 OTE

£25000 per annum + £50,000 OTE: h2 Recruit Ltd: London, Reading , Southend, Al...

Day In a Page

Homeless Veterans Christmas Appeal: Drifting and forgotten - turning lives around for ex-soldiers

Homeless Veterans Christmas Appeal: Turning lives around for ex-soldiers

Our partner charities help veterans on the brink – and get them back on their feet
Putin’s far-right ambition: Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU

Putin’s far-right ambition

Think-tank reveals how Russian President is wooing – and funding – populist parties across Europe to gain influence in the EU
Tove Jansson's Moominland: What was the inspiration for Finland's most famous family?

Escape to Moominland

What was the inspiration for Finland's most famous family?
Nightclubbing with Richard Young: The story behind his latest book of celebrity photographs

24-Hour party person

Photographer Richard Young has been snapping celebrities at play for 40 years. As his latest book is released, he reveals that it wasn’t all fun and games
Michelle Obama's school dinners: America’s children have a message for the First Lady

A taste for rebellion

US children have started an online protest against Michelle Obama’s drive for healthy school meals by posting photos of their lunches
Colouring books for adults: How the French are going crazy for Crayolas

Colouring books for adults

How the French are going crazy for Crayolas
Jack Thorne's play 'Hope': What would you do as a local politician faced with an impossible choice of cuts?

What would you do as a local politician faced with an impossible choice of cuts?

Playwright Jack Thorne's latest work 'Hope' poses the question to audiences
Ed Harcourt on Romeo Beckham and life as a court composer at Burberry

Call me Ed Mozart

Paloma Faith, Lana del Ray... Romeo Beckham. Ed Harcourt has proved that he can write for them all. But it took a personal crisis to turn him from indie star to writer-for-hire
10 best stocking fillers for foodies

Festive treats: 10 best stocking fillers for foodies

From boozy milk to wasabi, give the food-lover in your life some extra-special, unusual treats to wake up to on Christmas morning
Phil Hughes head injury: He had one weakness – it has come back to haunt him

Phil Hughes had one weakness – it has come back to haunt him

Prolific opener had world at his feet until Harmison and Flintoff bounced him
'I have an age of attraction that starts as low as four': How do you deal with a paedophile who has never committed a crime?

'I am a paedophile'

Is our approach to sex offenders helping to create more victims?
How bad do you have to be to lose a Home Office contract?

How bad do you have to be to lose a Home Office contract?

Serco given Yarl’s Wood immigration contract despite ‘vast failings’
Green Party on the march in Bristol: From a lost deposit to victory

From a lost deposit to victory

Green Party on the march in Bristol
Putting the grot right into Santa's grotto

Winter blunderlands

Putting the grot into grotto
'It just came to us, why not do it naked?' London's first nude free runner captured in breathtaking images across capital

'It just came to us, why not do it naked?'

London's first nude free runner captured in breathtaking images across capital