asked the Chancellor of the Duchy of Lancaster if he will institute an inquiry into the implication for investor protection of the effect on the ending of on-floor trading on the recent pattern of dealings and price movements on the London stock exchange; and if he will make a statement.

[pursuant to his reply, 27 October 1987]: The Department monitors the stock exchange, in particular its evolution and development as an efficient, competitive and suitably regulated central market which affords proper protection to investors. In addition the Financial Services Act which will come fully into force early next year, sets out arrangements for the statutory recognition of all investment exchanges which meet requirements set out in the Act. The stock exchange is expected to be one of the bodies applying for recognition.