London Stock Exchange

Andrew Hill

For a breed that is rarely found, sleeves rolled up, trying to unblock the U-bend, investment bankers are remarkably fond of plumbing metaphors. Around this time of year, they usually rush to point out just how full their “pipeline” of deals is. (One optimist told the FT this week the very size of this pipeline might itself prove to be a problem.)

The implication is that if some way could be found to clear the impediments, initial public offerings and acquisitions would come pouring out. This wishful thinking leads to some sharp-elbowed lobbying for changes to rules that supposedly deter such transactions. Bankers – and, to be fair, some entrepreneurs – would, for instance, like more flexibility to bring to market companies with a lower “free float” of shares (allowing owners to retain a larger stake). Read more

Andrew Hill

Britain is “considering new rules” to make the London Stock Exchange more attractive to start-ups, according to Bloomberg, using the US “Jumpstart our Business Startups” Act as the model.

Careful. The quest to make individual exchanges more attractive than their counterparts for initial public offerings is fraught with risk and can quickly turn into a race to the bottom on standards. Read more