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When issued dealing and stabilisation | Rules and regulations
When Issued Dealing
When Issued Dealing is a period of conditional dealing with deferred settlement. When Issued Dealing typically takes place in securities which are due to be listed or admitted to trading on one of the Exchange’s markets. Trades during the When Issued period, are conditional on the security being listed or admitted to trading and can only settle once trading has become unconditional. Where the security is not listed or admitted to trading, all transactions effected during the period of When Issued dealing are void.
Stabilisation
As required in accordance with Rule 1535 of the rules of the London Stock Exchange a member firm intending to act as or on behalf of a stabilising manager in a security to be traded on Exchange shall, prior to the commencement of the stabilising period provide the Exchange with information regarding the stabilisation.
The information listed below should be provided to the Admissions Team (admissions@lseg.com) and disclosed via an announcement through a Financial Conduct Authority approved Regulatory Information Service:
- The security to be stabilised, and any associated securities being stabilised;
- The stabilising manager and contact;
- The stabilisation period;
- The issue price of the security, unless the security is an investment falling within paragraph 12 or 13 of Schedule 2 to FSMA; and
- Any related over-allotment (or Green Shoe) options.
The Exchange acknowledges that there will be occasions when the issue price will not be known on the day before the commencement of the stabilising period. Therefore, a member firm shall notify the Exchange of the issue price as soon as it is finally determined.
A member firm shall also notify the Exchange if the stabilising period is to change.
