Listing Rules
Encyclopedia
The Listing Rules are a set of regulations applicable to any company listed on a United Kingdom
stock exchange
, subject to the oversight of the UK Listing Authority (UKLA). The Listing rules set out mandatory standards for any company wishing to list its shares or securities for sale to the public, including principles on executive pay and the requirement to comply or explain
noncompliance with the UK Corporate Governance Code, the requirements of information in a prospectus
before an initial public offering
of shares, new share offers, rights issues, disclosure of price sensitive information, or takeover
bids for companies.
In October 2010 the UKLA was part of the Financial Services Authority
, however due to the FSA's impending abolition, it is to be merged with either the Financial Reporting Council
or a new Consumer Protection and Markets Authority.
has had a long tradition of self-regulation
. Previous versions of the same kinds of rules were known as the rules on "Admission of Securities to Quotations" or "Admission of Securities to Listing".
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
, subject to the oversight of the UK Listing Authority (UKLA). The Listing rules set out mandatory standards for any company wishing to list its shares or securities for sale to the public, including principles on executive pay and the requirement to comply or explain
Comply or explain
Comply or explain is a regulatory approach used in the United Kingdom, Germany and other countries in the field of corporate governance. Rather than setting out binding laws, government regulators set out a code, which listed companies may either comply with, or if they do not comply, explain...
noncompliance with the UK Corporate Governance Code, the requirements of information in a prospectus
Prospectus
Prospectus may refer to:* Prospectus * Prospectus * Prospectus * Parkland College's newspaper...
before an initial public offering
Initial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
of shares, new share offers, rights issues, disclosure of price sensitive information, or takeover
Takeover
In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...
bids for companies.
In October 2010 the UKLA was part of the Financial Services Authority
Financial Services Authority
The Financial Services Authority is a quasi-judicial body responsible for the regulation of the financial services industry in the United Kingdom. Its board is appointed by the Treasury and the organisation is structured as a company limited by guarantee and owned by the UK government. Its main...
, however due to the FSA's impending abolition, it is to be merged with either the Financial Reporting Council
Financial Reporting Council
The Financial Reporting Council is the UK's independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.-Structure:...
or a new Consumer Protection and Markets Authority.
Overview
- LR 1, Preliminary: All securities
- LR 2, Requirements for listing: All securities
- LR 3, Listing applications: All securities
- LR 4, Listing particulars for professional securities market and certain other securities: All securities
- LR 5, Suspending, cancelling and restoring listing: All securities
- LR 6, Additional requirements for premium listing (commercial company)
- LR 7, Listing Principles: Premium listing
- LR 8, Sponsors: Premium listing
- LR 9, Continuing obligations
- LR 10, Significant transactions: Premium listing
- LR 11, Related party transactions: Premium listing
- LR 12, Dealing in own securities and treasury shares: Premium listing
- LR 13, Contents of circulars: Premium listing
- LR 14, Standard listing (shares)
- LR 15, Closed-Ended Investment Funds: Premium listing
- LR 16, Open-ended investment companies: Premium listing
- LR 17, DebtDebtA debt is an obligation owed by one party to a second party, the creditor; usually this refers to assets granted by the creditor to the debtor, but the term can also be used metaphorically to cover moral obligations and other interactions not based on economic value.A debt is created when a...
and debt-like securities: Standard listing - LR 18, Certificates representing certain securities: Standard listing
- LR 19, Securitised derivativeDerivativeIn calculus, a branch of mathematics, the derivative is a measure of how a function changes as its input changes. Loosely speaking, a derivative can be thought of as how much one quantity is changing in response to changes in some other quantity; for example, the derivative of the position of a...
s: Standard listing - LR 20, Miscellaneous Securities: Standard listing
- LR App 1, Relevant definitions
- LR App 2, Fees and financial penalty income
- LR App 3, List of Regulatory Information Services
- LR transchedule, Transitional Provisions
History
The London Stock ExchangeLondon Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
has had a long tradition of self-regulation
Self-regulation
The term self-regulation can signify:*Autoregulation*Homeostasis, in systems theory*Self-control, in sociology / psychology*Self-regulated learning, in educational psychology*Self-regulation theory , a system of conscious personal health management...
. Previous versions of the same kinds of rules were known as the rules on "Admission of Securities to Quotations" or "Admission of Securities to Listing".
See also
- UK company law
- London Stock ExchangeLondon Stock ExchangeThe London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
- US corporate law
- NYSE Listed Company ManualNYSE Listed Company ManualThe NYSE Listed Company Manual is a set of regulations applicable to all corporations who wish to sell securities by listing themselves on the New York Stock Exchange...
(here)