How to list Exchange Traded Products

ETFs can be admitted to trading on London Stock Exchange via 2 different routes:

1. Apply to the FCA for a London listing and to London Stock Exchange for admission to trading on the Main Market.
2. Apply to London Stock Exchange for admission to trading on the Main Market based on an existing EEA listing.

ETCs & ETNs can be admitted to trading on London Stock Exchange via the route below:

1. Apply to the FCA for an Official Listing and to London Stock Exchange for admission to trading on the Main Market.

For both routes the fund must be either an FCA authorised or recognised collective investment scheme and must take the legal form of an Authorised Unit Trust scheme (an AUT), an Investment Company with Variable Capital (an ICVC), or an Authorised Contractual Scheme (an ACS). Collective investment schemes established in the EEA from 1 January 2021 must be fully authorised under section 272 of FSMA. For EEA domiciled ETFs, fund managers are permitted to enter a new sub-fund (i.e a sub-fund authorized by its home state Regulator after implementation period completion day) for admission to trading for an umbrella fund which has an existing sub-fund in the Temporary Permissions Regime (TPR).

[1] To admit offshore CNY trading lines, we will require up to 1 months' notice. | Back to Note 1

LCH Requirements 

When a large number of securities are due to admit to the LSE market on the same day, LCH requires that the LSE provide additional lead time for security setups. Please therefore ensure that a draft Static Data Form is submitted to the LSE within the below time frames, to avoid any potential delays to admission.

In order to admit a new sub-fund the following confirmations are required. 

• Adviser needs to confirm that the ETF issuer already has a sub fund in the TPR providing details of the sub fund; and
• Adviser needs to confirm that the new sub fund has been entered in to the TPR. 

For ETFs admitting on the basis of a FCA listing, the below documents must be submitted to the Exchange 11 business days (by 12.00pm) before the target admission date, unless a sub-fund, whereby these can be submitted 5 business days before the target admission date:

• Form 1
• Trading form
• Prospectus/pricing supplement
• Stamped listing particulars
• For ETFs - Certificate of UCITS compliance or other FCA recognised non-UCITS scheme
• For other ETPs – Final terms

For ETFs admitting on the basis of an EEA listing, the below documents must be submitted to the Exchange 11 business days (by 12.00pm) before the target admission date unless a sub-fund, whereby these can be submitted 5 business days before the target admission date:

• Form 1
• Trading form
• Evidence of FCA recognition status
• Prospectus/pricing supplement
• Stamped listing particulars from an EEA competent authority (English version)
• Certificate of UCITS compliance from the home competent authority or other FCA recognised non-UCITS scheme (English version)

For ETCs & ETNs admitting on the basis of a FCA listing, the below documents must be submitted to the Exchange 11 business days (by 12.00pm) before the target admission date, unless a sub-fund, whereby these can be submitted 5 business days before the target admission date:

• Form 1
• Trading form
• Prospectus/pricing supplement
• Stamped listing particulars
• Final terms

Market Maker registration

• For each ETF/ETP admitted to trading on London Stock Exchange, we require at least one registered market maker to provide two-way prices on our order-book from the first day of trading.
• Existing market makers wishing to be registered in new ETFs must complete a Registration Information Form (RIF) (XLS) and email it to rif@lseg.com by no later than 15:30 on the business day before the target effective from date. We strongly suggest that a RIF should be submitted prior to this to allow for any possible corrections which may be required. New market makers should contact the ETF team beforehand to ensure they are setup to send executable quotes or named limit orders and to have their profile changed if necessary. 

Exchange membership

• The fund and fund manager are not obliged to be members of London Stock Exchange, though the Fund Manager would have to be authorised by the FCA in order to conduct investment business (this is a separate process to that of obtaining fund approval, outlined above). Membership of London Stock Exchange would allow access to all Exchange markets, not just ETFs. If fund agents or prospective market intermediaries want to become a member, they should: 
  • have an initial meeting with the Exchange’s Membership team to discuss their prospective requirements 
  • complete an application form and submit to the Exchange together with associated documentation
  • work with the Membership team to ensure appropriate trading and settlement links

An application form for membership (PDF) is available on the London Stock Exchange. Market participants acting as Exchange Market Makers, trading, creating and redeeming ETF shares would have to be members of London Stock Exchange.

Trading environment for Exchange Traded Funds

• The market for ETFs operates in an order-driven environment on SETS with integrated Market Maker liquidity provision, delivering guaranteed two-way prices. Market Makers must provide continuous bid-offer orders throughout the trading day in a minimum size and maximum spread regime. It is the responsibility of the issuer to arrange at least one registered Market Maker per security, however to ensure competitive pricing and protection from any individual member firm’s system issues issuers are advised to engage at least two Market Makers to register in each ETF. The order book provides continuous execution from after the open auction (which takes place from 7.50am to 8.00am) until the start of the closing auction at 4.30pm on all London business days. Participants are able to use both limit and unpriced orders during continuous trading. The closing auction runs from 4.30pm until at least 4.35pm and allows users to participate and trade at the single closing price, generated at the level that would provide the greatest uncrossing volume. The exact uncrossing time is dependent on random end times and price monitoring periods. Market Makers are required to maintain quotes until the completion of the closing auction to ensure that an appropriate closing price is set. This includes the random end period and any price monitoring extensions. The latest possible time of uncrossing is 4.49pm. If no closing auction occurs the closing price will be the mid price of the best bid/offer at the end of the closing auction. The following link provides details of Market Maker obligations (PDF) for ETFs on London Stock Exchange: Real-time market surveillance is provided throughout the trading day. ETFs are treated as ordinary equity in the Exchange rulebook, except with regard to the creation and redemption of ETF shares.