London Stock Exchange (Contango Facilities)

54.

Lieut.-Colonel Lipton
asked the Chancellor of the Exchequer whether Treasury approval was sought before con-tango facilities were revived on the London Stock Exchange.

Mr. Jay
No, Sir. The question of Treasury approval did not arise, as this is a matter in which the Stock Exchange is responsible for its own procedure.

Lieut.-Colonel Lipton
Can the Minister say what public interest is served by widening the scope of this unnecessary and unproductive speculation?

Mr. Jay
I think this is a case mainly for the Stock Exchange, rather than for the Government. It is a fact that the market for these securities is improved by this practice.

Lieut.-Commander Braithwaite
May I ask the hon. Gentleman if there was any consultation both with the Treasury and the Bank of England before reverting to this pre-war practice?

Mr. Jay
We were informed that it was likely to happen, but did not think it necessary to express any opinion.