With the London Stock Exchange about to unveil its defence strategy against a £2.7 billion bid by major shareholder Nasdaq, new record trading figures have given the LSE a big boost in its fight to remain independent.

Chief Executive, Clara Furse’s main line of defence is that the Nasdaq bid is “cheap” in the context of the exchange’s recent performance in world markets. The new results to be announced this week show the LSE to be the fastest growing stock market in the world.

The LSE raised £27.9 billion ($54.5bn) last year, 71pc up on the previous year. This is said to include £10.3bn from businesses which would normally be expected to use the American markets.

The value of share dealing was also up by more than 36pc at £142bn ($277bn). It’s also reckoned that seven of the LSE’s best trading days occurred in December, a month of restricted opportunities to trade.

In the defence document, Clara Furse is expected to return funds to shareholders and promise a dividend rise of more than 50pc in the context of record profits.

As always as of late the hedge funds, which own 30pc of LSE shares, hold the key to its survival. If Furse can persuade them to be patient and await results, she may force Nasdaq on the back foot.

Nasdaq CEO, Robert Greifeld, has already confirmed that he will set up a rival exchange in London if he fails to secure the LSE. New regulations from the European Union mean that the field will be open to all-comers soon. With Project Turquoise promised from a medley of banks, and tiny Plus Markets set to tilt at windmills, the LSE board may not be too worried at that prospect. London is its home turf, after all, and a few choice tie-ups, especially on the derivatives side, would strengthen its hand.

This month will see the emergence of a much clearer picture and greater definition added to the parties’ positions.

This has been a record year for world stock markets with IPOs raising £116 billion ($227bn), according to Ernst & Young.

The Hong Kong Stock Exchange did best, grabbing 17pc of the total. But the London Stock Exchange came a close second, with 15pc, ahead of the New York exchange on 11pc, Euronext on 8pc, and Nasdaq, at a lowly 6pc.

Much of the bonanza has come from Russian and Chinese companies seeking havens in lightly-regulated financial centres. The LSE has scored heavily over the American outfits because of the negative effect of the Sarbanes-Oxley legislation.

Michael Spencer, head of the world’s largest inter-dealer broker, ICAP, has suggested he may not sit idly by after Nasdaq’s move on the London Stock Exchange yesterday.

ICAP held abortive talks with the LSE during the summer. However, discussing ICAP’s £400 million takeover of currency trading platform EBS last year, Spencer commented : “The combination of ICAP and EBS networks provides ICAP with a distinctive capability — a high-speed global network for distribution of products that are increasingly traded around the clock.

“Almost all other businesses, the inter-dealer brokers and the exchanges, lack this global capability. Consolidation in these markets continues and ICAP remains in a very strong position.”

He added: “The group remains highly cash-generative with a strong balance sheet.”

Spencer also remarked that the inter-dealer broker market is still growing rapidly. ICAP’s profits in the six months to September rose 23pc to £120.8 million on revenues 22pc higher at £543 million. The shares rose 8.5p to 495p, valuing the business at a shade over £3 billion.

Nasdaq has made a new offer valued at £2.7 billion ($5.13bn) for the London Stock Exchange.

The LSE board has rejected the bid, claiming it undervalues the buoyant stock market, which has posted record trades and earnings in recent reports.

Nasdaq already owns more than 25pc of LSE shares, giving it a powerful advantage in the current round of consolidation deals. With the New York Stock Exchange well on its way to takeover Euronext, Nasdaq sees a liaison with the LSE as strategically crucial in its battle for business with its close NYC neighbour.

Shares in the LSE have traded briskly since the offer was made. The BBC calculates that if Nasdaq bought them all, they would have a 50pc holding in the company. That’s unlikely to be the case though.

With a proposed softening of America’s draconian Sarbanes-Oxley rules and a new bill protecting the LSE from foreign regulation from the Treasury, the major obstacles to a merger seem to be melting away.

Clara Furse and her board may have other tricks up their sleeves, not least a tieup with an exchange in the Far East — Tokyo was mentioned recently.

It’s still all to play for.