A review commissioned by the U.K. government suggests an overhaul of the London Stock Exchange’s listing rules, to enable the City to better compete with New York or European bourses such as Amsterdam.
- The listing review, led by former European Commissioner for financial services Jonathan Hill, proposes to shrink the mandatory float in an initial public offering from 25% to 15%, allowing founders to keep a greater control of their companies.
- It also proposes to allow dual-class share structures to attract tech companies to London.
- In a bid to attract special-purpose acquisition companies listing in London, the review also suggests no longer suspending trading on their shares when they announce that they have found a target.
- “The review has more than delivered and I’m keen we move quickly to consult on its recommendations,” said Chancellor of the Exchequer Rishi Sunak in a statement.
- The U.K. government is concerned that big chunks of share and derivatives trading have moved to New York and Europe since the country left the European single market on Jan. 1.
Read more: London set to overhaul listing rules to attract tech IPOs and cash in on blank-check boom
The outlook: Hill says the aim is to modernize London listing rules more than deregulate. Two months after Brexit, the U.K. government is citing Amsterdam as a model to emulate.
Also: Amsterdam just overtook London as Europe’s new top stock-trading venue
