A few London Stock Exchange brokers and traders are wondering what benefits, if any, would be realized from merging with Nasdaq? The answer to that question is that no one is entirely sure.

CEO of the London exchange, Clara Furse, declined Nasdaq's $4.1 billion offer almost fourteen days ago, as she has previously declined multiple similar proposals since taking charge of the exchange five years prior.

However many investors in London are extremely optimistic that a winning bid is coming from the US that they have hedged the stock prices of the London exchange by a hearty twenty percent above the offer, even as the market continues to loose its footing and slip from its high point on Monday. During the Day Thursday, values edged up 1.5 pence, to finish at 11.395.

In spite of the frenzy of many London exchange investors looking to liquidate their shares in the near future, a few market players are less than hopeful about merging the markets. The cynics also include a former Nasdaq executive.

"I'm not sure those advantages are so great," stated Lynton Jones, former chief executive of Nasdaq International "If you are able to create one company with one set of technology, one rule book and one set of regulations, then you begin to see cost reductions."

It appears unlikely in any combination of the London exchange and a United States market, Mr. Jones said. A recent visit by Nasdaq executives and investors who possess long standing and well established positions in the London exchange did not help in efforts to clear up the predicament, individuals who have been briefed on the talks say.

"It's still sort of a chess match," said Richard H. Repetto, an analyst with Sandler O'Neill & Partners. Nasdaq and London market officials have not conferred face to face or floated an offer since its initial disclosure on March 10th of this year.

Possible complexities of any integration are intimidating to a large extent. Both the Nasdaq and the London Stock Exchange are in the process of buying new and different trading technologies. Nasdaq acquired the electronic brokerage and trading platform Instinet last year and is switching to the Inet system. The London exchange just invested millions of pounds into a new digital platform known in the industry as Sets that will go online next year.

Another issue that is currently muddying the waters is also one of the items that makes London so attractive to the Nasdaq and others; the differences in regulation. Immediately after Nasdaq's initial proposal, the Securities and Exchange Commission of the USA and the Financial Services Authority (F.S.A.) of Britain made a formal agreement promising to substantially increase their mutual cooperation. The chairman of the S.E.C., Christopher Cox, said he could not foresee future regulatory obstacles to consolidation, and also stated regulators would be wise not to "suffocate transactions."

Nasdaqs offer comes along with London's strength is beginning to compete with New York, as it attracts international investors and emerging capital. British officials are promising heavy support for this merger. A new international business council continues to be one of the top locations for international companys most valued activities.