Saturday 15 January 2022
With reduced trading days
London Stock Exchange plans new startup segment
The London Stock Exchange wants to lure private companies onto the floor for which an IPO has not previously been an option. According to insiders, regulations are to be relaxed and trading in a new segment limited to a few days.
According to a media report, the London Stock Exchange wants to attract previously unlisted companies with a new market segment. The plan is aimed at fast-growing technology companies that have often not been listed on the stock exchange because of strict regulatory requirements, reports the Wall Street Journal, citing insiders.
With relaxed regulations and the restriction of stock exchange trading to individual days, the London Stock Exchange (LSE) wants to open up a new business area after Brexit. The shares should only trade one to five days a month, quarter or every six months, the paper wrote, citing proposals from the LSE to the regulator FCA and the Treasury.
The LSE and the UK Treasury did not initially respond to a request. The FCA declined to comment. As early as December, Great Britain had announced new rules for stock exchange listings, with which the attractiveness of the financial center should be increased. Since the country left the EU, the London Stock Exchange has faced increased competition from stock exchanges on the continent.
The aim of the planned expansion of the offer is apparently to be start-up companies for which, according to the report, conventional stock market listings are a deterrent. Accordingly, the London Stock Exchange has a new type of trading venue in mind that would serve as a stepping stone to regular stock exchange trading. It “should be seen as an improvement on current options for companies looking to raise capital without introducing regulations that stifle growth,” the paper reported.