The US Security and Exchange Commission (SEC) has accused London's AIM exchange of being akin to a casino.
Just weeks after an American bidder failed to buy the London Stock Exchange, SEC commissioner Roel Campos said: "I'm concerned that 30 per cent of issuers that list on AIM are gone in a year. That feels like a casino to me."
He added that "it is a losing proposition to tout lower standards as a way to promote your markets", and said that the LSE could be tainted with the lower standards associated with the AIM.
However, the LSE strenuously denied that this was the case, saying that Campos was "entirely wrong".
"They do a disservice to the quality small companies choosing to join AIM, the institutions choosing to invest in those companies and the high regulatory standards that the LSE promotes," the exchange said of the remarks.
British commentators also suggested that Campos' comments had a taste of sour grapes about them, coming as they did so soon after the failed LSE bid.
The Times pointed out that US company Vycon is due to list on the AIM, translating to work lost to Wall Street bankers and lawyers.
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