Those who fear for the future of the London Stock Exchange (LSE) at the start of the 21st century should reflect on the way it has successfully adapted to the enormous changes it has coped with in its 200-year history - and take heart. The past century, for example, saw an enormous increase in the power of the British state, especially during the two World Wars and after 1945. Yet the LSE preserved an independent existence and found a role for itself as the semi-official regulatory body for the securities market.

So the first lesson is that today's challenges can also become an advantage if the desire and foresight are there. This was the case in the past when the LSE also faced competition from alternative trading systems and saw its authority usurped by government.