Regulators in Frankfurt and London have been hard at work trying to hammer out a common approach to securities regu-lation since the iX merger was announced, and the early signs are encouraging. A paper setting out the basis for a common set of rules and standards is about to be published by regulators.

Sir Howard Davies, chairman of the Financial Services Authority (FSA), has made it clear that he has no intention of watering down the robust approach to securities regulation in London. For their part, the regulators in Frankfurt appear to be receptive to the need to introduce greater transparency in the German markets.