Regulatory Statement

London Stock Exchange
21 August 2000


Regulatory statement marks progress for iX-international exchanges


The UK and German supervisory authorities have today issued a statement on the
regulatory aspects of the proposed merger of the London Stock Exchange and
Deutsche Borse to form iX-international exchanges.

The two exchanges welcomed the joint statement from the regulatory authorities
in both countries.  They also expressed their appreciation that the authorities
had rapidly started work on the regulatory issues connected with the proposed
merger and had already established six working groups to cover the key areas
where harmonisation of regulatory supervision may be appropriate.

Today's statement confirms that the supervisory authorities are committed to
providing effective regulatory arrangements for the operation of
iX-international exchanges' markets as they develop.

Commenting on the statement, Don Cruickshank, chairman designate of
iX-international exchanges, said:  'When we announced the merger we emphasised
the important role that would be played by the regulatory authorities in the
development of the new exchange organisation and we look forward to working
closely with them.   Today's agreement further to develop a common regulatory
approach is an important step forward.   It marks significant progress in the
development of the appropriate regulatory arrangements to accommodate the market
model outlined in the merger Information Document, including the proposed
listing arrangements, which are particularly important for companies.    

'It is helpful to have this joint statement on regulatory issues ahead of the
vote on the proposed merger.  The vote will take place on 14 September as
originally announced.  This timescale allows nine weeks between the publication
of the Information Document and the date of the vote - a lengthy timetable that
was designed to allow time for both exchanges to run their programme of
shareholder visits and roadshows.'   


For further information please contact:

London Stock Exchange   
Jeremy Hughes                    [phone]                               
                  

Deutsche Borse
Sylvia Herbrich                    [phone]
 
Note to editors: 
The joint statement on regulatory issues concerning iX-international exchanges
plc has been issued by the UK Financial Services Authority and the German
Federal Securities Trading Supervisory Office (BAWe) and the Exchange
Supervisory Authority of the Hessian Ministry of Economics.