With the London Stock Exchange partially trussed up by Nasdaq — with a 25pc shareholding — the American exchange has been casting its newly roving eye elsewhere, specifically, to the Far East.

In the last few weeks Nasdaq has arranged co-operation deals with exchanges in Korea and Shanghai and with the Tokyo-based Jasdaq.

The New York Stock Exchange, not to be outdone, is also seeking a deal with the Tokyo Stock Exchange which will link the world’s two biggest markets through a 10pc share swap.

Where does all this leave the LSE?

Clara Furse, chief executive, is reportedly basing her defence on some great trading numbers and fundamentals to be announced shortly. Next week’s financial results will put the spotlight on strong IPO figures, high levels of trading and good transaction numbers on SETS, its electronic trading system.

It would be reassuring, however, to see the LSE spread its wings a little and become more predatory — like the Americans. A bit more ballast might help its fight to stay independent.

It’s catching on like wildfire. The urge to merge, that is. Now the Tokyo Stock Exchange (TSE) is gearing up to woo potential partners outside Asia.

Taizo Nishimuro, head of the TSE, hints at an attempt at a listing of its own shares in 2008, once its problematic trading system has been sorted out.

The Tokyo exchange needs to merge with an operator outside Asia to offer round-the-clock trading in an increasingly globalized market. Could this be the ideal partner for the LSE?

The consolidation movement continues its relentless progress.