British Chancellor of the Exchequer Rishi Sunak is set to propose powers to block companies from listing on the London Stock Exchange (LSE) if they pose a national security threat.
He is set to launch a consultation on the plans in the coming months, Her Majesty’s Treasury said on Tuesday.
The measures, first reported in the Financial Times, come after concerns were raised that existing British regulations allowed Russian oligarch Oleg Deripaska — who is subject to sanctions in the US — to list his energy company EN+ Group PLC in 2017.
The British House of Commons Treasury Committee in 2019 said that the listing was a “clear example of the risks inherent in the government’s fragmented approach to sanctions design and implementation.”
Decisions over the eligibility of companies to list on the LSE are currently made by an arm of the British Financial Conduct Authority, but under Sunak’s plans, some potential listings could be referred to the British National Security Council.
“The UK’s reputation for clean, transparent markets makes it an attractive global financial center,” the Treasury said in a statement. “We are planning to bolster this by taking a targeted new power to block listings that pose a national security threat.”
The consultation comes amid a push by the British government to boost the kingdom’s listing regime, part of a slate of reforms to increase the attractiveness of London as a financial hub after Brexit.
Plans include changing stock exchange rules around blank-check firms and allowing company founders to keep greater control when they list their businesses in the city.
With more than US$10 billion of initial public offerings (IPOs) this year, London is the biggest listing venue in Europe, data compiled by Bloomberg showed.
That lags the New York Stock Exchange, where nearly US$72 billion has been raised, as well as the Hong Kong Stock Exchange, which has drawn listings of nearly US$21 billion.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
PRESSURE EXPECTED: The appreciation of the NT dollar reflected expectations that Washington would press Taiwan to boost its currency against the US dollar, dealers said Taiwan’s export-oriented semiconductor and auto part manufacturers are expecting their margins to be affected by large foreign exchange losses as the New Taiwan dollar continued to appreciate sharply against the US dollar yesterday. Among major semiconductor manufacturers, ASE Technology Holding Co (日月光), the world’s largest integrated circuit (IC) packaging and testing services provider, said that whenever the NT dollar rises NT$1 against the greenback, its gross margin is cut by about 1.5 percent. The NT dollar traded as strong as NT$29.59 per US dollar before trimming gains to close NT$0.919, or 2.96 percent, higher at NT$30.145 yesterday in Taipei trading
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