This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: London Stock Exchange Proposes Special Listings for Private Companies
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > London Stock Exchange Proposes Special Listings for Private Companies
Markets

London Stock Exchange Proposes Special Listings for Private Companies

Editorial Board Published January 15, 2022
Share
London Stock Exchange Proposes Special Listings for Private Companies
SHARE

The London Stock Exchange LSEG 0.03% Group is seeking to blur the line between public and private companies, part of a plan to attract fast-growing technology firms to list in the U.K. in the wake of Brexit.

Contents
Newsletter Sign-upMarkets

The LSE has proposed the creation of a special market for private companies to trade their shares publicly on the exchange on certain days, according to a person familiar with the matter and proposals from the LSE to its regulators, the Financial Conduct Authority, and the U.K. Treasury, seen by The Wall Street Journal.

Private-company shares would trade publicly between one and five days in each trading window, once a month or quarter, or every six months. The companies wouldn’t be subject to the same degree of regulatory oversight as a fully listed company, requirements that startup company founders say are deterrents to listing shares.

“The new venue type would act as a stepping-stone between private and fully public markets,” the LSE wrote in a document it sent to the FCA and the Treasury on Dec. 21. It “should be seen as improving on the current options available to companies seeking to raise capital without imposing regulation that will inhibit growth.”

Startup founders, their employees and early-stage investors would be able to raise cash by selling shares to retail and institutional investors. Large private companies would also be able to access the public market under the proposal. Tech firms such as banking app Revolut, buy-now-pay-later giant Klarna and money-transfer startup Wise could have used this route to raise money for their shareholders, the LSE said in the proposal.

An LSE representative said there is “potential for additional routes to market to support the widest range of companies through their funding lifecycle including helping them transition from the private to the public markets and indeed back again.”

The program would require regulatory approval and legislative changes.

Representatives from the FCA and the U.K Treasury declined to comment.

The proposal comes as the U.K. looks to reshape its financial markets after leaving the European Union in 2021. In November, the U.K. government gave the FCA, its top financial policing organization, a secondary mandate to promote competitiveness in the financial sector in addition to maintaining financial stability and consumer protection.

London has struggled to attract young, fast growing companies, with tech firms typically choosing to list in the U.S. or Asia. The recent boom in special-purpose acquisition companies, or SPACs, largely took place in the U.S. The U.K. revised stock-listing rules last year in a bid to make London more attractive to tech companies and SPACs.

The LSE has endured a longer-term decline in the number of companies listed on its exchange, with the total amount falling to 1,989 in 2020 from 2,365 five years earlier. Last year saw a moderate reversal, with listed companies rising to 2,017.

Under the LSE proposal, companies would be allowed to conduct private share transactions between the public trading windows. Companies would also be able to share inside information with major stakeholders in those periods without having to disclose it publicly, according to the proposal.

Before a public trading window, the company would be required to put out a “cleansing statement” disclosing material information, which is intended to level the playing field, the LSE wrote.

The LSE named the idea “MTF-lite,” building on an industry term for a financial market known as a multilateral trading facility. If it goes forward, it would be the first exchange with this type of hybrid model for private companies to periodically access public investors.


Newsletter Sign-up

Markets

A pre-markets primer packed with news, trends and ideas. Plus, up-to-the-minute market data.


There are existing markets for privately held shares in the U.S., run by Nasdaq Inc. and a number of competing startups such as Forge Global Inc. and EquityZen Inc.

But these trading venues aren’t accessible to most individual investors. Under current regulations by the U.S. Securities and Exchange Commission, they are limited to accredited investors—people who meet certain wealth criteria, such as having a net worth of more than $1 million excluding one’s home or an annual income above $200,000.

In the U.S., the SEC is working on a plan to force more disclosure about the finances and operations of private companies due to concerns about a lack of oversight in the fast-growing segment of the market, The Wall Street Journal reported.

Write to Anna Hirtenstein at [email protected]

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article U.S. Businesses Sour on Saudi Arabia in Blow to Crown Prince U.S. Businesses Sour on Saudi Arabia in Blow to Crown Prince
Next Article From Bob Dylan to Tina Turner: Why Are Artists Selling Their Music Catalogs? From Bob Dylan to Tina Turner: Why Are Artists Selling Their Music Catalogs?

Editor's Pick

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

California dwelling of lacking child’s mother and father searched; father has served time for youngster cruelty

San Bernardino County sheriff’s investigators on Sunday, Aug. 17, searched the house of the mother and father of the infant…

By Editorial Board 9 Min Read
Search continues for lacking Norwegian trekker in Manitoba, however with out assist from northern Ontario crew
Search continues for lacking Norwegian trekker in Manitoba, however with out assist from northern Ontario crew

Whereas RCMP say they've their eyes on the fast-moving Hayes River, a…

6 Min Read
Steak ‘n Shake slams Cracker Barrel CEO for eliminating ‘old-timer’ from emblem: ‘We take delight in our historical past’
Steak ‘n Shake slams Cracker Barrel CEO for eliminating ‘old-timer’ from emblem: ‘We take delight in our historical past’

FOX Enterprise’ Jeff Flock experiences on Cracker Barrel unveiling a brand new…

4 Min Read

Oponion

Asking Eric: My husband says marriage is eternally and he gained’t transfer out

Asking Eric: My husband says marriage is eternally and he gained’t transfer out

Expensive Eric: I informed my husband I used to be…

February 22, 2025

Rahul Gandhi will defeat Narendra Modi and defend Structure: Telangana CM Revanth Reddy

Telangana Chief Minister A Revanth Reddy…

August 2, 2025

Barnburner! Pittsburg wins tenth straight with gritty victory over Campolindo

MORAGA — Highschool baseball in March…

March 26, 2025

Accounting Firms Scoop Up Virtual Land in the Metaverse

Accounting firms are following the example…

January 7, 2022

NCS softball playoffs 2025: The matchups are set. Right here’s what to know

MEET THE TOP TEAM: LIBERTY In…

May 18, 2025

You Might Also Like

Trump defends B Intel stake, says he’ll make offers prefer it ‘all day lengthy’
Markets

Trump defends $11B Intel stake, says he’ll make offers prefer it ‘all day lengthy’

The Lindsey Group CEO Larry Lindsey breaks down the current inventory market rally fueled by Jerome Powell's Jackson Gap speech…

4 Min Read
Trump’s 401(ok) enlargement fuels ethereum growth
Markets

Trump’s 401(ok) enlargement fuels ethereum growth

FOX Enterprise' Gerri Willis has the main points on the funding technique on 'Varney & Co.' Practically $4 billion of…

4 Min Read
Steak ‘n Shake slams Cracker Barrel CEO for eliminating ‘old-timer’ from emblem: ‘We take delight in our historical past’
Markets

Cracker Barrel inventory plunges amid model makeover backlash

FOX Enterprise’ Jeff Flock reviews on Cracker Barrel unveiling a brand new brand as a part of a broader model…

3 Min Read
Intel will get  billion from Softbank as White Home mulls stake
Markets

Intel will get $2 billion from Softbank as White Home mulls stake

Former Chrysler and Dwelling Depot CEO Bob Nardelli praises President Donald Trump’s daring financial play because the White Home eyes…

5 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?