The London Stock Exchange is witnessing a serious crisis as more companies leave for New York. Neither reforms nor marketing efforts have managed to halt this process.
FTSE 100 Companies Lead the Exodus
A significant number of major companies from the FTSE 100 index have left London in recent years, including Ashtead, Flutter, and CRH, collectively removing around £280 billion from the market. The move is driven by better liquidity and the attractiveness of American markets.
London's Reforms: Too Little, Too Late
The UK government has attempted to stem the exodus through reforms such as changes to pension and listing rules. However, the impact remains minimal as investor interest continues to focus on the US.
LSE and Cryptocurrencies
The London Stock Exchange has shifted focus by turning to cryptocurrencies. It recently launched ETNs on Bitcoin and Ethereum, offering institutional investors a new tool. Despite this adaptation, crypto initiatives have not yet offset the overall market decline.
The London Stock Exchange faces challenges in retaining and attracting companies. The need for reform is clear, but significant changes have yet to be achieved.
