P.M. BRIEFING : Briton Predicts Market Shift

TOKYO — The chairman of one of Britain’s biggest brokerages today predicted a major shake-out in the London equity market, with an increase in Japanese participation.

Michael Richardson, chairman of Smith New Court Ltd., told a press luncheon the number of market makers, currently 27 with half of the market held by just three firms, would be halved over the next two to three years.

“The ‘Big Bang’ was a double-barrelled shotgun. The second trigger will go off. There will be further job losses. Bankers and merchant bankers will have to realign themselves,” he said. The Big Bang was the liberalization of the London stock market in 1986.

“One or two merchant banks in London could be for sale. There is scope for a takeover by Japanese firms on an agreed basis. They would be welcome if they came in now,” he said.