The Chairman of the London Stock Exchange, Christopher Gibson-Smith, recently gave an interview to The Times (London) considering a number of possible outcomes for the business going forward.

In the wake of the comprehensive defeat of the Nasdaq bid, what threat is posed by the new giant forming across the water in Paris between Euronext and the New York Stock Exchange?

“What’s going to happen”, says Gibson-Smith? “I don’t suppose they know. We watch it really carefully, but it’s not a short-term threat.”

He also dismisses any increased competition arising from Mifid, the new EU directive on financial services, and the prospect of Project Turquoise, a rival trading platform from a consortium of powerful banks. Mifid, he says, offers more opportunities to the LSE than dangers, and more of a threat to continental rivals. “They have tried it before and not achieved it. They might this time. We don’t [believe they will]. We feel confident in being able to deal with it.”

The Chairman points out that the LSE is growing trading volumes by 55 percent a year driven by algorithmic trading, which allows business to be conducted electronically at high speed. “[The system] is transforming capacity to use our transformed market”, he says. “I see a world awash with opportunities.”

However, on global markets, he’s more cautious, “There are some real national barriers in the way of achieving that.” And will the NYSE/Euronext giant come gunning for the LSE? “It’s filling column inches, but …”

Philosophical to the end, Christopher Gibson-smith opines, “There have never been, in my entire business career, fewer than five huge uncertainties that have to be dealt with”.

Whatever happens, it’s obvious the Chairman of the LSE does not intend to be caught napping.

After its recent triumph in seeing off a distinctly hostile bid from American exchange Nasdaq, the LSE must be ruminating on its long run of successes in similar defensive situations over the past decade. Can it continue indefinitely?

Chairman, Christopher Gibson-Smith appears relaxed about the whole thing : “I joined [the LSE] because of the almost certainty that this sort of thing would happen.”

No regrets, then? “The succession of attacks against the exchange has disrupted our core business from delivering strategically.” In the end, though, “Everything can be dealt with. Everything is amenable to solution. I don’t engage with the world in terms of perceived obstacles that I can’t deal with. … I don’t regard Nasdaq [with 28.75 percent of LSE shares] as an obstacle to a major deal [with another exchange]. I don’t think we have any idea what Nasdaq wants to do.”

On the presence of other predators in the share register, including the no-nonsense hedge funds, Gibson-Smith says : “We ended up with a third generation of … let’s call them hedge funds, but I think of them more as active pursuers of value.”

Pollyana or realist, the LSE Chairman certainly gives the impression of being on top of a confused situation. As well he might in view of the recent run of victorious outcomes. But what of the new wave of consolidations, especially the new giant emerging on its doorstep comprising the New York Stock Exchange, Euronext and the one that got away : Liffe? And Project Turquoise is still to loom on the horizon.

More later.

The penny seems to have dropped for Robert Greifeld and his Nasdaq team that Clara Furse’s gritty defence of London Stock Exchange independence is winning hands down.

On Friday they seemed to have thrown in the towel when it was announced that the Nasdaq offer of £12.43 per share would not be increased, although the deadline for acceptances would be extended until February 10.

Neither the UK Government nor the Office of Fair Trading have offered any comfort for Furse in this steely tussle. She was left to make the business case without the kind of protectionism enjoyed by Nasdaq, which is virtually bid-proof.

For the fifth time in recent years she appears to have made that case supremely well. LSE shareholders, like the hedge funds, owe her nothing, yet have stood firm — so far. Victory is tantalizingly in sight.

When Nasdaq chief Greifeld flew back from the Davos Economic Forum in Switzerland on Friday, he overflew London and went straight back to New York. The symbolism of that move is clear. Clara is not for turning, and Robert knows it.

There are still dangers galore for a newly-refreshed LSE post-February 10. Greifeld could make good his threat to dump his entire near 30pc stake in the LSE onto the market, possibly causing a precipitate decline. That would not be good business, however, and could lose money if the hedge funds cut and ran.

In the longer term newer exchanges permitted under EU laws, such as Project Turquoise might upset the delicate balance of pricing and attraction for new IPOs.

Those are problems for the future, however, and will not prevent victory tasting very sweet.

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.