Europe's biggest stock market the London Stock Exchange has argued against a European Union proposal requiring firms to publish quarterly accounts, adding its influential voice to a growing chorus of opposition.

In a letter sent to the European Commission, the exchange said the UK's "continuous disclosure" rules provide greater transparency and protection for investors.

Companies now must issue results at least every six months and immediately make public statements on any issue likely to move their share prices.

"We do not believe that quarterly reporting should be mandated by EU law, as the requirement to disclose price sensitive information on an ongoing basis provides greater real-time transparency and investor protection," the letter said.

The LSE's view was backed by the UK Treasury, which is helping to formulate Britain's official response to the draft EU rule, as well as the country's top employers' lobby, the Confederation of British Industry (CBI).

"We are not convinced of the need for quarterly reporting in the UK at the moment," a Treasury spokesman said yesterday.

The EU Commission has consulted widely on a draft set of proposals aimed at giving investors much more information and creating more efficient, transparent markets.

The issue has gained in prominence since US accounting scandals at energy trader Enron and telecoms firm WorldCom rocked confidence in the quality of company accounts.

The commission is expected officially to unveil its proposed directive on regular reporting towards the end of 2002.

If the Commission goes ahead and ultimately drafts legislation requiring quarterly reporting, Britian cannot on its own defeat the bill.

It would need support from at least one other big EU country.

There are signs it would have backing from some influential industry groups in continental Europe. - (Reuters)