London still the main player in financial world

London continues to thrive as an international financial centre, open and ready for business. Its unique qualities: a globally trusted regulatory and legal framework, the most internationally diverse, deep and liquid pool of capital, and a proven ability to constantly be at the forefront of financial innovation make London and the UK the ideal home for companies and investors.

And London Stock Exchange, as throughout our 300 year history, remains committed to its core purpose - providing access to sources of equity and debt finance for companies of all sizes from all over the world.

Over the past 12 months, UK and international equity and debt issuers have continued to turn to London. A few examples: Bank of Cyprus switched its €1.4bn primary listing from another European exchange; Egypt raised $7bn through London-listed bonds in the first 6 months of 2017 and closer to home, UK logistics company, Eddie Stobart, joined our unique growth market, AIM, in a £572m IPO.

To date in 2017, 34 IPOs have raised £2.8bn on London Stock Exchange and we continue to be the number one listing venue in Europe by number of IPOs and money raised.

Only last week, finance software provider, Alfa Systems listed here, raising £254m, with a market capitalisation of close to £1bn. It was the largest IPO in 2017 so far and a significant accomplishment for the company and the UK tech sector.

Whilst we know that it’s never been more critical to continue attracting UK and international companies to our markets, we also understand the importance in encouraging greater private investor participation in the capital markets. Individuals play a crucial part in providing funding and liquidity to UK-listed businesses. Beyond straightforward access to the markets, improving private investor education and access to information is a key area of focus for us.

At the start of the year, we partnered with the Chartered Institute for Securities & Investment (CISI) to launch a dedicated education portal on our website. A number of educational videos are available to view online which demystify the trading process. This adds to the series of educational podcasts and tailored fact sheets we put together for the private investor community last year. But why does the health of the stock market matter to you and me?

Last month on these pages we talked about the potential of the UK’s fastest growing businesses in our 1000 Companies to Inspire Britain report and that’s where the stock market comes in.

We support the flow of capital from investors to innovators and growing businesses in the UK, Europe and across the world. In turn, companies have the funding they need to invest in innovation, jobs and growth.

And many of the companies we’re seeing come to market are not only investing in their growth but making a significant mark on improving our lives. Over the past 12 months, a number of funds have raised capital in London, looking to invest in social housing, the private rental sector and research into cutting edge medicines.

Last week, The Private Rented Sector Real Estate Investment Trust raised approximately £250m, breaking new ground in being the first quoted Real Estate Investment Trust to focus purely on building newly-constructed family homes for rent across the UK.

What’s more, the capital they are securing is equity finance or long term ‘patient’ capital, which we believe is the most appropriate form of funding for businesses to grow long term. A dependence on bank and debt finance, tying businesses into long–term debt repayments, can be crippling.

It remains vitally important to continue promoting the resilience of our financial markets, the City’s unique heritage and the UK’s leading position on the world stage. We need to remain a market open to the world, putting UK and international businesses and investors at the heart of our strategy.

To learn more about trading on London Stock Exchange, visit www.lseg.com/education