JIWAY LTD RECOGNISED AS AN INVESTMENT EXCHANGE

Economic Secretary Melanie Johnson has given the Financial Services Authority (FSA) leave under the Financial Services Act 1986 to recognise Jiway Ltd (Jiway) as an investment exchange.

The FSA is responsible for recognising domestic investment exchanges but needs leave from the Treasury to do so. The Treasury are required to consider a report from the Director General of Fair Trading (DGFT) on whether the rules of the applicant exchange will have any significant anti-competitive effects.

The DGFT concluded that the rules of Jiway do not appear likely to restrict, distort or prevent competition to any significant extent. The Treasury agreed with the DGFT's conclusions and, in line with usual procedures, has therefore given the FSA leave to recognise.

Miss Johnson said:

"I welcome the addition of Jiway to the list of UK recognised investment exchanges. Jiway's decision to site their exchange here confirms once again London's pre-eminence as an international financial centre and the attractions of the UK business and regulatory environment."

Jiway is the second new investment exchange recognised by the FSA this year. The other was Coredeal, an electronic exchange for international debt-related securities, which was recognised in May.

NOTES FOR EDITORS

Recognition as an investment exchange under section 37 of the Financial Services Act 1986 (the Act) enables the exchange to carry out investment business in the UK. The Financial Services Authority applied to the Treasury for leave to recognise Jiway under Section 120 of the Act.

Jiway is an electronic exchange for European and US equities. It is wholly owned by Jiway Holdings Ltd, which is owned 60:40 by OM Gruppen AB (publ) and Morgan Stanley Strategic Investments I Inc.

Jiway applied to the Financial Services Authority for recognition on 15 June 2000. The report from the Office of Fair Trading was received on 26 October 2000.

Recognition of Jiway should provide UK investors with greater choice for trading in equities and increase competition within the UK financial services industry between other UK exchanges.

The other domestic recognised investment exchanges are:

London Stock Exchange

International Petroleum Exchange

London International Financial Futures and Options Exchange

London Metal Exchange

OM London Exchange

Tradepoint

Coredeal

The recognition requirements are laid down in Schedule 4 of the Act. To be recognised, exchanges must, amongst other requirements:

have financial resources sufficient for the proper performance of its functions;
have rules and practices which ensure that business is conducted in an orderly manner;
limit dealings to investments where there is a proper market;
have adequate arrangements and resources to ensure compliance with its rules.

Media enquiries should be addressed to Charles Keseru in the Treasury press office on 020 7270 5188.