Mr Gibson-Smith will start his new job in July

The London Stock Exchange (LSE), Europe's biggest share market, has named Dr Chris Gibson-Smith as its new chairman to replace Don Cruickshank in July.

Mr Gibson-Smith is currently chairman of Britain's air traffic controller, National Air Traffic Services, and also a non-executive director of British Land and Lloyds TSB.

He was formally managing director of BP's UK arm but is relatively little known in the City.

Analysts said his commercial experience will be a welcome addition to the LSE as it tries to move away from its staid image.

Breath of fresh air

Jeff Miller from Exeter Asset Management told BBC Radio 5 Live that Mr Gibson-Smith would need to listen to the City.

"It's no bad thing to have someone from outside what is still a fairly closed circle in the City...provided he is prepared to listen to what market participants have got to say.

"There's still a lot of problems with the stock exchange," added Mr Miller.

Analysts said one of Mr Gibson-Smith's first tasks would be to consider a merger with one of the other rival organisations in Europe.

The LSE aborted its planned merger with Germany's Deutsche Boerse in 2000 and has since tried but failed to buy London's futures and options exchange, Liffe.