Dame Julia Hoggett called the new listing rules "a cause for celebration."

Reforms framed as a reset for primary markets

The London Stock Exchange's chief executive was clear and direct. Dame Julia Hoggett said measures introduced by the Financial Conduct Authority are delivering "the greatest set of primary markets reforms in a generation," and that retail investors must be brought back into the market.

The rules are designed to lower costs and help firms raise money faster in the U.K. They simplify prospectuses in many cases, halve the time between initial documents and an initial public offering, and make it easier for already-listed companies to issue shares without lengthy paperwork. The FCA has been explicit about trimming red tape; the LSE has been busy selling the changes as a way to revive listings and broaden investor access.

Hoggett also highlighted an LSE initiative that leans on the reform: "access bonds" that can be issued in much smaller denominations. "They can be issued in denominations even as low as one pound," she told an audience marking the reforms, arguing smaller bond sizes help more individual investors take part in capital markets.

Market backdrop: numbers that explain the urgency

The push for change comes against a stark backdrop. Between 2020 and 2024 the number of companies listing on London plunged. The exchange raised over £16 billion through 126 IPOs at the 2021 post-pandemic high, including technology listings such as Wise and Oxford Nanopore. By 2024 IPOs had slumped to 18, while delistings jumped to 88 that year—leaving a delisting-to-IPO ratio near 5:1. Those figures show why reformers are alarmed: the public markets lost company count at a faster clip than peers in the U.S.

And parts of Europe.

These numbers matter because fewer listings limit options for founders, reduce domestic capital growth, and shrink the stock choices for investors. That matters to Hoggett — and to policymakers who worry London is losing business that might once have listed here.

How LSE leaders and politicians are selling the comeback

Hoggett is positioning the LSE as an active partner in the policy push. She told delegates at a City event that retail investors had been "a critical linchpin" of the exchange historically but had grown increasingly disenfranchised over two decades. Reviving retail participation is a stated priority: easier prospectuses, quicker listings, and smaller-denomination bonds are all part of that plan.

Chancellor Rachel Reeves had been due to speak at the same event and was expected to show the reforms as "reinvigorating" the City, pointing to a strong FTSE 100 run and signs that global firms are again choosing London. Reeves didn't appear after she pulled out amid headlines about renewed tariff threats from U.S. President Donald Trump over Greenland, but her scheduled remarks reflect official enthusiasm for policy changes designed to make the U.K. More competitive.

Hoggett and other City figures are also stressing wider reforms aimed at cutting friction for companies that want to list. They argue these changes preserve investor protections while making the process more competitive versus other markets.

Structural challenges that reforms need to overcome

That said, the LSE's priorities aren't just about rules and paperwork.

Structural issues have weighed on listings for years. Market liquidity has been a chronic complaint; U.K. Equities have often traded at a valuation discount to global peers; and a handful of policy choices have discouraged certain pools of capital.

For example, Stamp Duty on share purchases remains a headline issue. Critics argue it raises the cost of trading and contributes to lower turnover. Separately, Solvency II rules that govern insurance and pension fund investments have been cited as constraining long-term institutional allocations to listed equities. Those pressures have been widely discussed as part of the explanation for UK companies choosing private capital or foreign listings instead of public floats at home.

Hoggett has acknowledged the depth of the task. Revamping listing rules is one piece, she says; restoring investor confidence and reshaping the incentives for long-term capital flows are another. The reforms target the first piece; the rest will require policy and market responses beyond the LSE's control.

Retail reconnect and the access bonds play

Bringing retail investors back matters for a simple reason: it broadens the investor base and can help improve liquidity for smaller issuers. Hoggett argued that retail access has narrowed over two decades and that reversing that trend should be a priority. The "access bonds" initiative is pitched as a way to let individuals buy fixed income instruments in small amounts, potentially rebuilding ordinary savers' financial connection to U.K. Companies.

Smaller bond denominations make it easier for more people to get involved. That could change how savers allocate some assets, shifting a tiny share from cash and simple savings products into listed debt. It's unclear if this will actually boost market liquidity or change how people invest long-term; that will depend on how well these bonds are adopted and promoted.

What critics and data say about the scale of the problem

Independent analysis of listings and delistings points to deeper trends. The drop from 126 IPOs in 2021 to 18 in 2024, against a spike in delistings, signals a more structural contraction in the number of publicly traded firms. The delisting-to-IPO ratio approaching 5:1 is one stark way to show how the market has shrunk over recent years.

That evidence helps explain why the LSE and the FCA have prioritized speed and cost reductions: if listing mechanics are one deterrent among many, fixing them at least removes one barrier. But the contraction reflects a host of forces: capital can now be raised in private markets for longer, some global companies prefer U.S.

Exchanges, and pension and insurance fund rules shape demand for UK equities.

Near-term prospects and what to watch

For the market to change materially, reforms need to translate into more deals and more sustained investor engagement. The LSE will watch listings activity closely in the months after the regulatory changes take hold. Hoggett's message is simple: faster, cheaper listings and new retail-friendly instruments should help rebuild London as a go-to listing venue.

But the real test is whether that policy momentum nudges companies that otherwise would list abroad back toward London, and whether it persuades institutional allocators to take a longer view. The early signs — a late spurt in listings into 2025 cited by the LSE — gave supporters reason to hope. Whether that becomes a trend is what markets will now decide.

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"They can be issued in denominations even as low as one pound," Dame Julia Hoggett said of the LSE's new access bonds.