Brokers in line for LSE bonus

Thirteen Irish stockbroking firms may receive shares worth £2 million to £4 million sterling (€3.16.2 million) each if the members of the London Stock Exchange vote to demutualise next year.

The Irish firms are members of the London exchange and each owns one B share.

The shares are expected to be worth £2 million-plus each if - or when - the demutualisation goes ahead.

Under proposals likely to be put next year, all members of the exchange will be offered an equal share in the new entity.

There are just under 300 members of the exchange and estimates of £500 million sterling to £1 billion sterling have been put on the value of the exchange.

Three-quarters of the membership has to vote for the proposal for it to proceed.

A spokesman for the exchange was unable to say yesterday if MMI Stockbrokers, the Dublin brokerage which went into liquidation earlier this year, would benefit if the scheme went ahead.

The firm held a B share but is no longer listed as a member of the exchange on its website. The decision to demutualise was announced in July and led to increases in the share prices of small publicly quoted brokerages. The move is designed to give greater flexibility for change to the exchange.

The Irish members of the London Stock Exchange are: ABNAmro Stockbrokers (Ireland) Ltd; AIB Corporate Finance Ltd; BCP Stockbrokers Ltd; Bloxham Stockbrokers Ltd; Campbell O'Connor & Co; Dolmen Butler Briscoe; Dolmen Securities Ltd; Fexco Stockbroking Ltd; Goodbody Stockbrokers; IIU Stockbrokers Ltd; J & E Davy; NCB Stockbrokers Ltd; and W & R Morrogh (Stockbrokers) Ltd.