The British parliament's Treasury Committee is to launch an inquiry into the future role and competitiveness of the London Stock Exchange, a member of the committee said yesterday.

The move to investigate the exchange was sparked by last week's surprise dismissal of its chief executive Mr Michael Lawrence amid bitter internal wrangling over proposed changes to the method of trading shares on the London exchange.

News of the investigation came just a day after the exchange confirmed it intends to press ahead with the introduction of a new trading system for shares later this year.

A review process leading to the introduction of the new trading service will begin with the issue of a consultation document on today.

The inquiry will concentrate on the ability of the exchange to remain competitive with overseas exchanges in the future.