LSE's CEO Fires Back at Aramco IPO Critics

The video discusses liquidity rules in premium markets, emphasizing that a 25% liquidity threshold is not mandatory for listing. It highlights instances where large companies listed with less than 25% liquidity, similar to practices in the U.S. The discussion shifts to the potential shelving of Saudi Aramco's IPO and whether London's market is less attractive due to Brexit. However, data shows increased IPO activity and capital raising, indicating sustained market interest. The video concludes with a positive outlook on market performance, citing increased depth, liquidity, and a variety of IPOs.

What is the primary purpose of the 25% liquidity test in the premium market?

• To ensure companies have a minimum market capitalization

• To guarantee enough liquidity for smooth trading

• To limit the number of companies listed

• To increase the market share of smaller companies

Why might Saudi Aramco consider shelving its international IPO?

• To avoid regulatory scrutiny

• To focus on domestic investments

• Because of London's decreasing attractiveness

• Due to a lack of investor interest

How has Brexit potentially affected London's financial market?

• It has led to a decrease in the number of IPOs

• It has made London more attractive for international companies

• It has had no impact on London's market

• It has raised concerns about London's attractiveness

What trend is observed in the number of IPOs and capital raised this year?

• A decrease in international company listings

• No change in the number of IPOs

• A substantial increase in IPOs and capital raised

• A significant decrease in both

Which of the following financial instruments has seen an increase in the market?

• Traditional stocks

• Only domestic bonds

• Cryptocurrencies

• Green debt and infrastructure debt