Members of the London Stock Exchange voted overwhelmingly yesterday to become a public listed company, staking its claim to a leading role in a planned pan-European trading floor.
Sir John Kemp-Welch, chairman of the London Stock Exchange, said: "Today's vote moves the exchange into a new era, providing a structure that will allow it to compete more effectively in the rapidly developing environment in which stock exchanges now operate."
The decision to jettison mutual status came on the same day as Belgian Finance Minister Mr Didier Reynders announced that the Amsterdam, Brussels and Paris stock markets had reached an "advanced" stage in talks on a merger which would be open to any other interested European stock exchanges.
Mr Reynders's statement seemed aimed at forcing five other partners - including London - to decide whether they wish to push ahead with stalled plans for a planned pan-European market.
The exchange's demutualisation, which required the support of at least 75 per cent of the 298 shareholders, clears the way for the exchange to make the constitutional changes necessary to register as a public company named "London Stock Exchange plc".
Dealing in the new ordinary shares is expected to begin in late April or early May.
Announcing the result of yesterday's vote, the London Stock Exchange said it "remains committed to the creation of a panEuropean stock market and has played a leading role in developments to date . . . The exchange intends to play a leading role in the creation of a pan-European market in whatever way and however quickly it develops".
But a spokeswoman said she could not comment further as there was still no official announcement on merging the Amsterdam, Brussels and Paris stock markets.
After the London exchange's vote, chief executive Mr Gavin Casey described the planned new structure as "an important step".
Last month he had told reporters that the real issue in the coming years was how to create a more efficient pan-European market.
At the time, he said that while there was no plan to merge with another exchange at present, "in the future, in the correct circumstances, we could [merge with another market]".
Analysts agreed that the change of status improves London's chances of retaining prominence in an increasingly competitive environment.
They pointed to the development of Internet trading and the plans by the tech-heavy US Nasdaq to introduce pan-European trading, as well as the planned link-up of European stock markets.
Europe's eight biggest exchanges - Amsterdam, Brussels, Frankfurt, London, Madrid, Milan, Paris and Zurich - signed a protocol last May on creating a unified European exchange at the end of this year.
But the scheme has stalled on technical and cultural difficulties, and last month Germany denied reports it was planning to pull out.
The Irish Stock Exchange hopes to join the alliance and has signed a letter of intent with the Deutsche Borse under which the German exchange will provide it with electronic trading facilities.
