The London Stock Exchange has taken the unusual step of reducing the units that are used to price a share in a move to cancel out attempts by two of its fledgling rivals to gain an advantage in the increasingly competitive European equity market.

The LSE told clients today it will reduce the "tick sizes" - which is the unit in which share prices are quoted - on 14 of its most liquid stocks from Monday June 22. The move is in response to similar reductions by rival trading platforms known as multi-lateral trading facilities.