Source: The National, UAE                       Date: 18 May, 2011

Quite a lot has happened since the London Stock Exchange (LSE) in February announced a "merger" - the term is in dispute - with the Canadian bourse operator TMX. A multibillion-dollar bidding war has broken out between European and US exchanges over control of western financial markets; a general election in Canada has returned the same conservative government that expressed concerns about the LSE-Canadian plan a few weeks back; and a consortium of Canadian bankers has grouped together to try to block the deal.

Oh, and the LSE has done a deal with the Mongolian Stock Exchange. You might have missed that one in the blur of global markets activity, but the LSE announced it was going to help the people of Mongolia to establish their very own bourse. Now, Mongolia is a fascinating place and - thanks to soaring global commodity prices - will be able to boast high rates of economic growth for some time to come. But for an organization such as the LSE, which likes to claim it is the leading financial marketplace in the European time zone, to be even bothering about Ulaanbaatar while the future of global exchanges is being decided in Frankfurt and New York is indicative of how the LSE's world view has diminished.

It also recently signed deals with stock exchanges in India and Malaysia, but, interesting as these places certainly are, they are not going to be the locations for the next major global financial market. And nor is London, judging by the way things are going. The LSE's ambitions are not the only thing that has diminished since the Canadian plan was announced. Its shares have also taken a hammering. From about £930 in February, they had fallen 11 per cent to stand at £826 at the time of writing.

Whether the LSE, under the relatively new chief executive Xavier Rolet, is bothered about the concerns of Gulf investors is uncertain. We do know, however, that when the Canadian deal was first announced there was some consternation, at least in Dubai. The emirate had been given only the most perfunctory advance notice of the intended link-up, and some were not impressed with what they heard.

The signs are not good that London will emerge from all this with a strengthened strategic position, or very happy shareholders. Still, the LSE will always have Ulaanbaatar.