LSE warns up to 200 firms may move listings to US

The London Stock Exchange drew up a ‘worst case’ scenario projecting that as many as 200 listed companies could transfer their primary listings to US exchanges. The scenario estimates the UK Treasury could lose about £2 billion in revenue.

The contingency plan covers large multinational companies and fintech startups. It models how a significant reduction in listed firms would lower trading activity and reduce tax receipts tied to market transactions.

Earlier this year AstraZeneca and Wise moved their primary listings from UK markets to US exchanges. The LSE is monitoring those and other listing changes as part of the assessment.

Some investors and companies have criticised the UK’s 0.5% stamp duty on share trades, saying the levy raises trading costs and makes UK markets less competitive compared with US venues. A number of market participants have called for the tax to be removed to help retain listings and trading volumes in London.

The LSE’s scenario does not predict an immediate exodus. It sets out the scale of potential disruption if multiple issuers decide to re-domicile their listings and links the estimated £2 billion shortfall to lower trading volumes and related market activity.

The exchange plans to use the assessment to inform discussions with the UK Treasury and other market stakeholders about options to maintain listing and trading activity in London.