Press releases 2010
Exchange welcomes Budget consultations to boost access to capital for SMEs
The London Stock Exchange today welcomed the Government’s plans, announced in yesterday’s Budget, to consult on allowing AIM shares to be eligible for inclusion in ISAs and reforming the Venture Capital Trust regime.
The Government will consult on allowing AIM shares to be eligible as a tax-advantaged investment for retail savers, and thus eligible for ISA inclusion. The Government will also consult on modifications to the Venture Capital Trust rules, including increasing: the employee limit for investable companies to either 100 or 250 employees; the gross asset limit to £15 million before the investment, and £16 million after; and the annual investment limit to £5 million.
The Exchange welcomes this consultation and strongly believes that if implemented, these two proposals will provide a real boost for small and medium sized enterprises, unlocking important additional capital needed for expansion, and supporting economic growth, job creation and entrepreneurial activity.
Marcus Stuttard, Head of AIM, London Stock Exchange Group, said:
"We are delighted that the Government is to consult on allowing AIM shares to be eligible for inclusion in ISAs and modifying the Venture Capital Trust rules. These very promising signs reflect the constructive dialogue we and others, including the Quoted Companies Alliance, have been engaged in with Government departments over the past 18 months, and we are delighted at the increased recognition among policy makers of the importance of SMEs to economic growth.
“We are grateful that the Government is looking into giving Venture Capital Trusts greater freedom in the investments they make in small cap companies. We believe, like they do, that policies that facilitate access to public equity finance will support business and jobs. We will also continue to engage in constructive discussions at a European level, engaging with other market operators and policy makers, to discuss and identify solutions to alleviate the challenges SMEs face in accessing finance”
For further information, please contact:
Alastair Fairbrother Press Office +44 (0)20 7797 1222
Notes to editors
About London Stock Exchange Group:
London Stock Exchange Group is Europe's leading diversified exchange business, incorporating Borsa Italiana and the London Stock Exchange. With over 500 member firms and more than 3,000 companies quoted across its markets, the Group operates the largest and most liquid equity marketplace in Europe.
The London Stock Exchange itself is the world's most international exchange with more than 600 overseas companies from over 70 countries. These figures include international companies quoted on the Alternative Investment Market (AIM), the London Stock Exchange's growth market, and the world's most successful market for small and medium sized enterprises with over 1,200 companies.
The Group offers trading in a wide range of instruments, holding the number one position in the trading of exchange-traded products (ETFs and ETCs) and through its interest in MTS, is Europe’s leading platform for the trading of fixed income products. Through the Order Book for Retail Bonds (ORB) and Mercato Telematico delle Obbligazioni (MOT) the Group also offers a comprehensive range of UK and European corporate and government bond trading services. Its Italian Derivatives Exchange Market (IDEM) sees over €2.5 billion worth of trading every day and through EDX London the Group provides a facility for the trading of Scandinavian and Russian equity derivatives.
London Stock Exchange Group also offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis. These include services from Monte Titoli, the Central Securities Depository for all Italian financial instruments, and Cassa di Compensazione & Garanzia (CC&G), which in July 2009 was granted Recognised Overseas Clearing House (ROCH) status by the FSA to operate in the UK.
With the acquisition of MillenniumIT, the Group encompasses a leading developer of low cost high performance trading platforms and financial markets software serving both the industry and the Group's own businesses.
Since February 2010 London Stock Exchange Group has owned a majority stake in Turquoise, a Mulitlateral Trading Facility (MTF) providing pan-European lit and dark equity trading in some 1,700 securities across 17 countries.