According to a report from the Wall Street Journal citing a source familiar with the matter at hand, the London Stock Exchange Group has proposed a special market for private companies to trade their shares publicly on the exchange on select days.
The move is part of a plan to attract technology companies for listing in Britain in the wake of Brexit.
According to the report, private company shares would trade publicly between one and five days in each trading window, once a month or quarter, or every six months.
The measure is part of proposals sent by the LSE to the Financial Conduct Authority, and the U.K. Treasury.
These companies would not be subject to the same degree of regulatory oversight as a fully listed company, since they are seen as deterrents to the listing of shares.
“LSEG agree there is potential for additional routes to market to support the widest range of companies through their funding lifecycle including helping them transition from the private to the public markets and indeed back again,” said the LSE’s spokesperson.
On December 21, 2021, the LSE had sent a document to the FCA and to the Treasury stating that “the new venue type would act as a stepping-stone between private and fully public markets.”
It “should be seen as improving on the current options available to companies seeking to raise capital without imposing regulation that will inhibit growth.”