On 17 September 2018, following limited response to consultation launched 10 July 2018, the London Stock Exchange (LSE) announced that proposed changes to the Admission and Disclosure Standards would become effective from 1 October 2018.
The changes primarily relate to the launch of the Shanghai-London Stock Connect Segment and the admission to the Main Market of Chinese A-shares' depositary receipts. The Shanghai-London Connect Segment is a collaboration between the LSE and the Shanghai Stock Exchange. It allows investors to access Chinese A-shares through a DR programme listed on the London Stock Exchange and qualifying LSE-listed issuers may also access Chinese investors in Shanghai by listing a DR on the Shanghai Stock Exchange. A new schedule is proposed to be inserted into the Admission and Disclosure Standards to regulate the admission criteria for issuers seeking entry to the Shanghai-London Stock Connect Segment.
Other proposed changes include:
- amendments to continuing obligations to clarify that issuers are required to publish price-sensitive information in accordance with the Market Abuse Regulation via a regulatory information service;
- a new rule requiring an applicant for admission to trading to provide the LSE with a copy of the registration document, prospectus, listing particulars, admission particulars or similar as soon as electronically available; and
- amendment to the existing rules on cancellation of listings to clarify that the LSE may cancel admission to trading of securities if it is satisfied that there are special circumstances that preclude normal dealings in those securities, e.g. where the listing has been suspended for more than six months.
The original consultation can be found here:
The results of the consultation can be found here:
The new Admission and Disclosure Standards came into effect on 1 October 2018.
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