Is the London Stock Exchange prodding Nasdaq to raise its £2.4 billion ($4.2bn) bid for the LSE? The Guardian suggests today that this may be the case.

The British newspaper cites yesterday’s upbeat trading statement from the exchange that, “the average daily volume of trades on its SETS electronic platform was 216,000 in the 11 months to February 28, up 29 percent on the previous year.”

In the statement, Clara Furse, CEO, reflected that the LSE was on course for “excellent” annual results. “Since January, trading had improved further, and was up 38% on the previous year.”

The LSE has rejected the Nasdaq offer, believing it undervalues the business.

Clearly, the 308-year-old exchange is stirring the pot of competition and looking for the highest value bid. However, as we reported on Monday, a takeover of Swedish exchange OMX might be the best long-term result both for the LSE and its client base, and for the continuing pre-eminence of the City of London as the world’s premier financial centre.

Will the latter consideration figure in the decisions of the principal shareholders? If it doesn’t, the regulators should step in. That’s why they’re there.