Choose your route to market

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

Obtain either FCA authorisation or recognition

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).

Submit application to London Stock Exchange

London Stock Exchange currently maintains criteria on fund characteristics to ensure they are favourable to market conditions and maintaining liquidity:

• The underlying vehicle for the ETF is an open-ended investment fund
• The fund is FCA-authorised or recognised, e.g. UCITS 
• The ETF is either settleable in CREST, Euroclear Bank or Clearstream, depending on the trading service utilised. ETFs seeking admission to LSEG will utilise either SETS or Trading Service for ETFs
• Euroclear Bank settlement. This will depend on the settlement venue and trading/settlement currency requirements.

The application for admission to LSEplc can be administered by the fund’s sponsor or directly by the issuer. It is necessary to arrange for the creation of the relevant trading codes (i.e. once it has been determined what funds are to admit) as soon as possible in the admission process 

ISIN/SEDOL

International securities identification numbers (ISINs) are normally allocated by the country of domicile of the issuer. LSEplc is then responsible for allocating a stock exchange daily official list (SEDOL) code, which is a unique instrument identifier. Please email the pricing supplement(s) to this email address and allow 48 hours for these to be assigned.

TIDM

A tradable instrument display mnemonic (TIDM) is the three- or four-character identifier specific to London Stock Exchange. Issuers may request a specific TIDM, which will be issued provided it is not already in use or reserved. Once reserved, these are held for a period of six months. Requests should be made to the Market Admission and Data Management team, who manage new admissions to London Stock Exchange. Please email the issuer name and the description of each line (multicurrency lines require unique TIDMs), making it clear that it is a TIDM request, here.

Obtain approval from London Stock Exchange

In order to admit an ETF to trading the following documentation will be required.

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)

Start of trading on the Main Market

Market Maker registration

• For a Market Maker to register in the security they must complete and send in a Registration Information Form (RIF) before 5.30pm the day prior to listing, although we strongly suggest this is sent in earlier if possible to account for any corrections to the form that may be needed. 

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 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 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.