The main argument of this paper is that UK plc might benefit more from fragmentation of equity markets than from consolidation.  What Mocroft envisages is a series of local electronic exchanges, run on a franchise basis, but with a national back office system for payment, settlement etc.  The companies listed on these exchanges would be those with a particular regional focus - some coming from the main (LSE/AIM) list and some being listed regionally for the first time.  The intention would be to tap a new type of retail investor - someone with local links who wants to invest in a local company. 

For Mocroft and Haarhoff, this would fill a blinding need, both for the investing public and for smaller companies, who are increasingly priced out of main board listings.
                                         
In order to cut the cost of listing on these regional exchanges, Mocroft is suggesting that listing requirements, due diligence, etc should be less onerous.  It is this suggestion that listing standards should be relaxed so as to permit smaller firms to list that is so controversial.