ABSTRACT
London, the Scottish Stock Exchange (which was regionalized in 1964), and sixteen other stock exchanges, including the Irish ones. Following the regionalization of the English exchanges the provincial element in the Federation fell to three exchanges, plus the Irish markets and the Provincial Brokers Stock Exchange.3 To be effective of course Federation required executive powers, and these are exercised by the Federal Committee. They cover matters on which the constituent exchanges are prepared to delegate authority, while the decisions taken at Federation level are then implemented by the constituent exchanges. The Federal Committee consists of twenty-six members. fourteen nominated by the London Stock Exchange, ten from the Associated Stock Exchanges, and two from the Provincial Brokers' Stock Exchange, while the Government Broker is also an ex-officio member. However, to ensure that executive powers are not exercised to the detriment of a substantial part of the Federation the constitution provides that a resolution to be effective must be carried by 75% of the votes cast. Thus when a resolution has been so adopted it becomes binding on the individual exchanges, with disciplinary action extending to expulsion from the Federation if they do not comply. The assumption of new executive powers by the Federal Committee requires reference to each member exchange which can grant its approval by a simple majority vote of the governing committee.
