LSE, DB Enter New Phase Of Alliance, Merger Of SETS & Xetra Is Pending

TRANSACTION SYSTEMS

LONDON--Having completed Phase 1 of the alliance between the London Stock Exchange (LSE) and the Deutsche Borse (DB), the LSE has proposed some short-term changes to SETS which are required to begin to "harmonize" it with Xetra.

DB is also discussing proposals for changes to its electronic order book Xetra. The results of both sets of discussions will be published this summer. Details of this were on the LSE Web site (http://www.londonstockex.co.uk).

The LSE and the DB announced an agreement in

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