LSE consults on changes to Admission and Disclosure Standards

The London Stock Exchange (the “Exchange”) has published Market Notice N13/18, in which it is consulting on proposed changes to its Admission and Disclosure Standards (the “Standards”).

The Standards apply to a company seeking to admit securities to the Exchange’s Main Market (including the High Growth Segment or Specialist Fund Segment) or Professional Securities Market (PSM). Some parts also apply to admission to the Exchange’s International Securities Market (ISM). The Standards do not apply to a company seeking admission to AIM.

The main change is to extend the Standards to companies looking to admit depositary receipts (DRs) to the new Shanghai-London Stock Connect Segment (the “Shanghai Segment”) of the Exchange’s Main Market. The Shanghai Segment is a collaboration between the Exchange and the Shanghai Stock Exchange to allow global investors to access Chinese A-shares through a DR programme.

Companies seeking admission to the Shanghai Segment would need to comply with the Standards, including a new schedule that would apply specifically to Shanghai Segment applications.

The notice also proposes other changes, including an ability for the Exchange to cancel an issuer’s admission to trading if there are special circumstances that preclude normal dealing in the issuer’s securities. This would include where the securities have been suspended for more than six months.

The Exchange has asked for comments by 7 September 2018.