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City bosses lament catastrophic London Stock Exchange loop after deadly exits

City bosses lament catastrophic London Stock Exchange loop after deadly exits

 


Saturday April 13, 2024 6:00 a.m.

The London Stock Exchange faced a series of bruising outflows last week

Two high-profile City figures have taken aim at the doomsday loop and negative media narrative gripping the London Stock Exchange after a bruising week of headlines for the stock market.

Neil Shah, who leads the London Stock Exchange's outreach to technology companies, said yesterday people should look beyond the headlines and basket cases after the stock market was hit by a wave of delistings and of barbs from companies over the past seven days.

Anyone who has been following closely will be familiar with the broad reform agenda and the work of the Capital Markets Industry Task Force and these reforms cannot come soon enough, Shah wrote on LinkedIn.

There is always light at the end of the tunnel. Don't lose your head among all this catastrophic talk.

The comments come after the London Stock Exchange suffered a series of exits this week, with AIM-listed E-Therapeutics describing the market as broken and closed at the time of its departure announcement, citing lack of interest of investors.

This release marks the 15th release from the AIM junior market in the first few months of the year, alongside a decline in new registrations. Five companies have floated on both the Main Market and AIM this year.

Financial market figures and regulators have launched a series of barbs against negative media discourse around the City over the past 12 months.

Speaking to City AM in September, London Stock Exchange boss Julia Hoggett targeted media coverage around the City and said people had narratives in mind and were looking for things to fulfill them rather than any something else.

A report of industry body UK Finance Last year, the perception of the media's approach and attitude had considerable influence when considering whether to join UK markets, with some companies saying their approach was to join the UK in stealth mode to avoid the news cycle and potential negative public sentiment. .

Shah's comments were echoed yesterday by financial markets guru Mark Austin, who said the doom loop surrounding the market was exaggerated, not representative of the facts on the ground and unnecessary.

The changes we've made, how they fit together, and what they mean as a package are noticed and implemented. Investors and issuers listen and agree and the narrative changes, Austin wrote.

Austin is the author of a series of in-depth studies into the state of Britain's capital market over the past three years, which have sought to shake up the rules governing the city.

Since 2020, the government has commissioned reviews in areas including primary markets, the fintech sector, the secondary market and the investment research sector.

Sources

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2/ https://www.cityam.com/city-chiefs-lament-london-stock-exchange-doom-loop/

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