London exchange exodus is a sign of US dominance

Last year saw the biggest outflow of companies from the London Stock Exchange since the global financial crisis. According to accountants EY, 88 companies, including Paddy Power owner Flutter, travel group Tui and Just Eat, abandoned the London market for US and European exchanges.

- HOWARD MUSTOE

It comes amid fears of the capital’s shrinking relevance as a place to do business following Britain’s exit from the European Union. Last month, former London Stock Exchange boss Xavier Rolet said there is a “real threat” that more UK companies will move their listings to America as trading thins out in London and grows over there.

The loss of 88 firms is the most since 2009, said EY. During the same period, there were 18 new listings. where companies first sell shares to the public.

The shrinkage of London as a global market has been steady. Twenty years ago, when banks, manufacturers, oil companies and pharmaceutical firms dominated lists of the biggest companies, UK-listed stocks accounted for 11 per cent of the global market. Now it is about 4 per cent.

The trend is as much about America’s growth as it is about London’s shrinkage as the US and its giant tech stocks have dominated world markets.