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Bourse merger under fire
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June 20, 2000: 5:30 a.m. ET
UK retail brokers call for more time to examine London-Frankfurt tie
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LONDON (CNNfn) - The planned merger between the London and Frankfurt stock exchanges was threatened with delay on Tuesday after the body representing Britain's retail stockbrokers called for more time to assess the impact of the proposed tie.
The Association of Private Client Investment Managers and Stockbrokers (Apcims) wrote to London Stock Exchange Chairman Don Cruickshank to call for more information on the proposed regulatory system for the merged exchange, to be known as iX.
Apcims has around 180 member firms and represents around a third of the  London exchange's voting shareholders, giving it a pivotal role in the approval process. It is also concerned that planned changes in the settlement and clearing of share trades could drive up transaction costs for its members.
"Strategically, the merger is a good idea [but only] when we have a clear idea what is in the information memorandum. Our concern is in the details," said Apcims spokesman Brian Mairs.
The board of Frankfurt's Deutsche Boerse has already approved the deal, and both exchanges are due to put it to shareholders in September.
The LSE is due next month to provide details to members of how iX will operate, but Apcims is concerned that the timetable is too tight.
The U.K. Fund Managers' Association has already expressed concern over plans to retain two separate regulatory regimes, one governing pan-European blue-chip shares, which will be traded in London, and the other covering the growth-stock market that will be based in Frankfurt.
Apcims said it shared those concerns and also highlighted concern about the proposed replacement of London's three-year-old Sets trading system with Frankfurt's Xetra platform.
"Costs could rise," said Mairs. 
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