LONDON/SYDNEY - BRITAIN'S and Australia's financial markets have temporarily suspended trading of Lehman Brother's Holdings Inc, following the company's filing for bankruptcy protection in the United States.

The Britain's Financial Services Authority also announced on Monday that trading was suspended in several Lehman Brothers operations including Lehman Brothers Treasury Co B.V. .Lehman Brothers UK Capital Funding II LP.

The Bank of England says it is monitoring the situation and will take appropriate actions if necessary to stabilise money markets.

The Australian Securities Exchange on Monday suspended Lehman Brothers Australia Ltd. as a market participant after third-party clearers terminated their services for the troubled firm.

The move comes as the US parent company - Lehman Brothers Holdings Inc. - announced it intended to file for bankruptcy. The 158-year-old Lehman was crippled by US$60 billion in soured real-estate holdings and unable to find an investment partner to throw it a lifeline.

In Australia, third-party clearers Citi Securities Clearing Australia and Berndale Securities said they would no longer provide services to Lehman Brothers but committed to meet obligations for any unsettled trades, the exchange said in a statement.

Third-party clearers handle stock exchange trades on behalf of another company.

'Consequently, in the absence of clearing arrangements, Lehman Brothers Australia has had its status as an ASX Market Participant suspended immediately, under the terms of ASX's Operating Rules,' the exchange statement said.

The suspension is initially for one month but could be extended.

The exchange guaranteed the performance of its trades and said it continuously monitors risk management activities of market participants.

It noted that Lehman Brothers Australia, formerly Grange Securities, does not trade on the Australian cash or futures markets and does not participate directly in the daily batch settlement process.