UKEMA backs improvements to secondary markets

The UK Equity Markets Association (UKEMA) has welcomed attempts increase the attractiveness of the UK’s public equity markets in its response to the FCA’s consultation paper on Improving Equity Secondary Markets (CP22/12).

The UMEMA’s response supported proposed changes to improve post-trade and pre-trade transparency, the tick size regime, and efforts to strengthen market wide resilience during outages. Many UKEMA members also noted the positive benefits of the Retail Service Provider system, particularly in providing users with a flexible, immediate and low-cost method of execution for users.

Sunil Dhall, Chair of the UKEMA said: “The UKEMA recognises that these consultations can increase the attractiveness of our public equity markets and we support reforms that will result in a better outcome for investors, companies and investment firms.”

The response follows similar engagement with the Secondary Capital Raising Review led by Mark Austin, which the UKEMA welcomed.

The UKEMA response to the Improving Equity Secondary Markets consultation can be viewed here.

About UKEMA

The UKEMA represents those investment banks and equity brokerage firms that focus on raising capital for SMEs, particularly listed firms.

Its members trade in shares of over 2,000 quoted companies, accounting for 57% of London Stock Exchange turnover by volume in 2021, and produce research on over 1,700 companies, representing 87% of listed issuers.

UKEMA member firms facilitated investment of more than raised £6.7bn in funds for companies in 2021, supporting growth in the real economy, employment, innovation, entrepreneurship and wealth creation.