Rules and regulations

The attractiveness of the Exchange's markets is maintained by providing an efficient and well regulated market place. As a Recognised Investment Exchange (RIE), the Exchange also has to satisfy the requirements detailed in the Financial Services Authority's RIE and RCH Sourcebook. Orderly markets are maintained via rules, guidance and through the monitoring of trading and market activity. Stock Exchange Notices disseminate amendments to market rules and guidance.

The Exchange's primary aim is to provide issuers, intermediaries and investors with attractive, efficient and well-regulated markets in which to raise capital and fulfil investment and trading requirements.

Rulebook
All London Stock Exchange member firms are bound by the Rules of the London Stock Exchange (“the rules”) and must ensure compliance with these rules.  The rules were fully updated in 2007 in readiness for the introduction of the Markets in Financial Instruments Directive (“MiFID”or “the Directive”).  The revised Rulebook also aligned the rules more closely with the structure of the trading system TradElect and simplified them where possible to make them more user-friendly.

The Rules are therefore closely linked to the operation of the trading system and should be read in conjunction with the Guide to TradElect and the Parameters. Associated guidance and parameters are available from the downloads below.

A copy of the latest version of the Rulebook is available on the downloads below and is divided into the following sections:

Definitions
Core rules
Order book trading rules
Off order book trading rules
Market maker rules
Settlement, clearing and benefits rules
Compliance
Default

Stock Exchange Notices and guidance
Contains information about updates to the Rules of the London Stock Exchange, together with information on Stock Exchange Notices and Compliance Updates. 

Forms and agreements
Forms and agreements currently used by Member Firms for regulatory purposes.

Buying in
Provides detailed guidance of the procedures, costs and timescales associated with buying-in.

Making a complaint
This section explains what to do if you have a complaint and how to make it. This is most likely to be useful to private investors.

Default information
The Exchange may encounter live regulatory and operational issues that, from time to time, warrant additional information to be made available to member firms and market participants.  This page provides a link to such live issues.

Dividend procedure timetable 2009
The dividend procedure timetable is available from the downloads below.

Admission to trading
To be able to list on the main market, an issuer must comply with the UKLA’s requirements for granting officially listed status.  In addition an issuer must apply to the London Stock Exchange to be admitted to trading on the main market. The Exchange has a set of straight-forward admission and disclosure standards that will help you to gain admission to the main market.  For the application for admission of securities to trading Form 1 go to Regulatory Forms & Agreements. 

When issued dealing
The Exchange will permit when issued dealing in a security provided that the Exchange is satisfied that there can be a fair and orderly market for the trading of that security.

Downloads
Rules of the London Stock Exchange (file pdf - 5 MB)
Dividend Procedure Timetable 2010 (file pdf - 593 KB)
Guide to TradElect (file doc - 884 KB)
TradElect Parameters post MiFID (file xls - 351 KB)