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The head of the New York Stock Exchange has launched a blistering attack on the lack of regulation surrounding the London Stock Exchange’s junior Aim market.

John Thain, chief executive of the NYSE, criticised the junior market for its lack of corporate governance standards. Mr Thain, speaking at the World Economic Forum in Davos, Switzerland, said he felt Aim “did not have any standards at all and anyone could list”.

Although he believed it was beginning to change its approach, he added that London “had to be careful not to damage its reputation by allowing in companies that are not well run”.

He also said that he felt that neither the LSE’s Official List nor Aim had such a strict approach to corporate governance as his own NYSE or Nasdaq, which is currently trying to buy the LSE. Many in London do not want an American takeover because they fear overly-stringent regulations, such as Sarbanes-Oxley, may be forced to apply to UK-quoted companies.

Telegraph.co.uk: NYSE chief attacks Aim

The threat of foreign ownership has promted the government to rush through Sarbox protection legislation for the London Stock Exchange.

Last year, the volumes and values of European IPOs outstripped US activity for the first time in four years – as companies moved to avoid the onerous requirements of Sarbanes-Oxley.

And a senior director of US stock exchange Nasdaq has admitted that Sarbanes-Oxley has damaged its ability to attract new listings. The exchange is now frantically lobbying the US authorities to revise the regulatory rules.

AccountancyAge:Can the government protect the LSE from Sarbox?