On 13 July 2010, NYSE Euronext London opened for business as a new London listing venue for shares and depositary receipts, and is operated by LIFFE Administration and Management. NYSE Euronext announced that the new primary market is intended to attract international issuers looking to list shares or depositary receipts on the Official List of the UK Listing Authority (UKLA). It is designed to capture international business from the London Stock Exchange (LSE) (and AIM).
Ronald Kent, global head of NYSE Euronext’s international listings, announced to the press that NYSE Euronext London is ‘in talks’ with around 50 international companies who are considering listing on the new London market. He believes that due to NYSE Euronext’s structure and European connections, it can offer issuers access to a broad base of investors.
Listing on NYSE Euronext London
Listing on the new market will be subject to the UK Listing Rules and the process will be similar to that of the LSE: an application to the UKLA for an admission to the Official List; and an application to NYSE Euronext for admission to trading on its London market. Listings can be denominated in British pounds, euros or US dollars.
There is an NYSE Euronext Listing Application Form and Rulebook, which, subject to some local variations, is harmonised across each NYSE Euronext market (Amsterdam, Brussels, Lisbon, London and Paris).
Issuers admitted to listing and trading on NYSE Euronext London will have ongoing disclosure obligations pursuant to the UK Listing Rules and the NYSE Euronext Rulebook. As with listings on the LSE, international issuers will also be expected to comply with a UK Combined Code on a voluntary ‘comply or explain’ basis.
There will also be a procedure for issuers to transfer an existing listing from another regulated market to NYSE Euronext London, which for an existing UK listing will involve notifying the UKLA and submitting an application to NYSE Euronext.
Trading on NYSE Euronext
Shares or depositary receipts will be traded on NYSE Euronext’s Universal Trading Platform (UTP), which enables members to access each NYSE Euronext market via the same platform.
Existing members of NYSE Euronext markets can extend their membership to include the new London market (using the NYSE Euronext Membership Extension Form) and all new members can apply for membership using the NYSE Euronext Membership Application Form (which is common for all NYSE Euronext markets).
NYSE Euronext London will operate both continuous and quote-driven order books. The normal market hours will be 8am to 4pm (London time), with opening and closing auctions at 8am and 4.35pm. Off-order book negotiated trades can be effected via the Trade Confirmation System (TCS), which is open from 6.15am to 6pm (GMT).
The trading Rulebook is harmonised and, subject to local variations, is common across each NYSE Euronext market. Transactions are centrally cleared via LCH.Clearnet Group and settled in Euroclear with a T+3 settlement period. Membership is open to those applying to be general clearing members, individual clearing members or non-clearing members.
There is no application fee or ongoing membership fee, and members are charged trading fees and a combination of fixed and variable connection and network fees based on order entry capacity (in messages per second). There is also a rebate scheme for liquidity providers.
By William Garner, solicitor, and Duncan Scott, solicitor, Speechly Bircham LLP.