LSE to stay in the City

June 12, 2001
Web posted at: 1039 GMT

LONDON (CNN) -- The London Stock Exchange said on Tuesday it would remain based in the City of London, its home for 200 years.

The LSE issued a statement ending speculation that it was moving to Canary Wharf in London's Docklands area, east of the City, which has drawn many investment banks and brokerages.

The exchange said it had signed a 25-year lease to move to the new Paternoster Square development beside St. Paul's Cathedral in the City in 2004 from its present base on Old Broad Street, called Exchange Tower.

Speculation about a move to Canary Wharf provoked controversy in London as it would have reduced the City's standing as the most famous financial district in the world along with Wall St.

"I am pleased to confirm the Exchange's new headquarters will be based in the City of London," said Chief Executive Clara Furse. "The City is widely regarded as the financial heart of Europe and the London Stock Exchange is part of its lifeblood."

The LSE has occupied the current site since 1972, before the so-called "Big Bang" of October 27 1986 that brought in electronic trading and other reforms.

The origins of the LSE go back to the 18th century City, which is now also known as the Square Mile, where people wishing to invest or raise money bought and sold shares in coffee houses.

The LSE, which became a public company on June 8 last year, said it will use the proceeds from the sale of Exchange Tower to fund the move to its new headquarters as well new business initiatives.

Last year the LSE pulled out of a planned merger with the Frankfurt Stock exchange and in November fought off a hostile $1.36 billion takeover by the Stockholm Stock Exchange's owners, OM Group.

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