The London Stock Exchange said yesterday it was taking the first steps towards its planned strategic linkup with Frankfurt and would send initial proposals on harmonising share trading to banks in London next month. A spokeswoman for the exchange said a series of measures were under discussion as the two centres pilot their alliance, but she declined to comment on specific issues.

Under the plan, German trading would close half an hour later, the same as London, the a press report said. Other proposals covered details such as changes to the rules governing the size of trades allowed under London's electronic dealing system SETS.