27 April 2015

LSE to cut issuer fees following OFT probe

27 November 2003  |  4124 views  |  0 London Stock Exchange2

The London Stock Exchange (LSE) has agreed to cut the fees it charges companies for listing on the market following an investigation by the Office of Fair Trading.

The OFT's investigation, under the Financial Services and Markets Act 2000, was in response to the LSE's significant increase in issuer fees for the year 2002/3. It comes amid growing complaints among large investment banks about the pricing power wielded by monopolistic national exchanges.

The LSE has agreed to reduce its annual fees for issuers by more than 25% on average with effect from 1 April 2004. The OFT estimates that these price reductions will reverse most of the 2002/03 increase - bringing it down from around 85% to an increase of 35%. The LSE has also agreed not to raise main market annual fees significantly for a further two years.

The LSE has also undertaken to reduce its admission and annual fees on the small cap AIM market. In all, it is estimated that had these prices been in place in 2002/03 the LSE's revenue from charges would have been around £5.8m lower.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

25 November, 2003
06 November, 2003
22 October, 2003
14 October, 2003
08 October, 2003

Related company news

 

Top topics

Most viewed Most shared
Banks on the brink as customer experience...
8507 views comments | 46 tweets | 37 linkedin
Finextra Future Money Day 1 - Live blog
5659 views comments | 7 tweets | 5 linkedin
Future Money roundup: Big banks have their...
4801 views comments | 17 tweets | 9 linkedin
SunGard explores possible sale - Reuters
4284 views comments | 14 tweets | 8 linkedin
Commerzbank venture fund invests in eToro
4199 views comments | 10 tweets | 4 linkedin

Featured job

to GBP £80K base, double OTE
London, UK or Madrid, Spain

Find your next job