Press releases 2004
18 May 2004
London Stock Exchange confirms change to AIM's regulatory status.
The London Stock Exchange today confirmed that it will change AIM’s regulatory status ahead of the deadlines for implementing the EU Directives which form part of the Financial Services Action Plan.
From 12 October 2004, AIM will operate as an exchange-regulated market, relinquishing its EU "Regulated Market" status, which it has held since its launch in June 1995.
This move will ensure that AIM’s current regulatory regime and market structure will be preserved with continued regulatory oversight by the Financial Services Authority.
This decision by the London Stock Exchange follows several months of consultation and discussions with the AIM community, HM Treasury and the FSA about the impact of EU Directives on AIM.
Martin Graham, Head of AIM, said:
"AIM is the world’s most dynamic market for smaller growing companies and the London Stock Exchange is delighted that it can continue to operate the market in its current form. This change to AIM’s status secures its position and gives us a firm foundation from which to continue to grow and develop the market."
The London Stock Exchange is considering specific rule changes that may be required to ensure the continuing smooth operation of AIM as an exchange-regulated market and will consult with market participants and the AIM community in the coming months.
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AIM is the London Stock Exchange's international market for young and growing companies. Launched in 1995, currently there are 820 AIM companies. Of these 71 are international companies.
In 2003, 162 new companies joined AIM, including 66 IPOs raising over £1 billion, with AIM alone accounting for 60% of all IPOs in Western Europe [with the London Stock Exchange as a whole accounting for 78% of all IPOs in Western Europe]. The number of shares traded on AIM more than doubled from 24.8 billion in 2002 to 57.7 billion in 2003 with the value of shares traded rising from £3.5 billion to £6.6 billion over the same period.
About the London Stock Exchange:
The London Stock Exchange is one of the world’s leading equity exchanges and a leading provider of services that facilitate the raising of capital and the trading of shares.
The London Stock Exchange is the most international equities exchange by trading in the world and Europe's largest pool of liquidity. By the end of 2003, the market capitalisation of UK and international companies on its markets amounted to £3.3 trillion, with £3.6 trillion of equity business transacted over the year.
The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.