The London Stock Exchange, which has seen almost a half of its shares snapped up by two rival Arab Royal families, has announced that the summer’s volatility in share trading during the credit crunch in financial markets has boosted growth in the booming exchange’s business.

Chief executive Clara Furse said the merger with Borsa Italiana should be completed by October 1st. “The exchange is very close to completing the merger with Borsa Italiana, having secured overwhelming support from both sets of shareholders. We are focused on implementing our merger plans which will lead to accelerated growth for the enlarged group.

“The Exchange continues to make excellent progress and has delivered a very strong trading performance for the year to date. In particular, the Sets electronic order book achieved enormous volume growth over the summer, as increased market volatility during the period added to strong growth already being facilitated by the new TradElect platform, in conjunction with customer and other exchange initiatives.”

In the past five months alone, the number of deals done on the Sets electronic trading system has grown by 75 percent over the same period a year ago, to around 551,000 a day. This smashes the 480,000 target set for the full year ending next March.

The London Stock Exchange is looking for a new name for the business that will own the merged LSE and Borsa Italiana.

Although the London exchange will retain its own name, the new entity will reflect the two components of the company, the LSE announced.

The London Stock Exchange has undergone yet more changes in its make-up as a result of the frantic tussle between rival Gulf States, Qatar and Dubai.

Dubai currently holds 29 percent of LSE shares after buying up most of the Nasdaq stake. Qatar has 21 percent but seeks more.

The LSE board sees the Qataris as friendly invaders — with a seat at the top table — and plans to help Dohar in Qatar become a world-class financial centre.

Meanwhile, the partnership between Nasdaq and Dubai (which owns 20 percent of the American exchange, while Nasdaq has 30 percent of the Dubai International Financial Center) is close to gaining control of Swedish-based exchange group, OMX, also a target for the Qatar Investment Authority.

American predator, Nasdaq, is reported to have agreed a deal to sell it’s 31 percent shareholding in the London Stock Exchange to the state-owned Qatar Investment Authority for £14 ($28) a share.

Nasdaq needs the money to raise its offer for the Scandinavian group, OMX.

So far, the motives of the Qataris for buying the share bundle is unknown. As a prelude to a full-scalle takeover bid, it would be unwelcome. The LSE would prefer a buyer who will support its long-term plans.

Big money from the Middle East is still stalking the London Stock Exchange.

The Qartar Investment Authority, which is also preparing to buy J Sainsbury, the British supermarket chain, is said to be joining forces with three major Italian investors to take Nasdaq’s stake in the LSE, worth around £1billion ($2bn).

Nasdaq is selling its shareholding to increase its offer for Nordic exchange OMX, where it is in competition with another Gulf state, Dubai.