FCA to consider market structure changes to boost ‘patient capital’

first_imgThe UK’s financial markets regulator is seeking feedback on market structure and regulation to assess whether they reinforce short-termism.The Financial Conduct Authority (FCA) published a discussion paper on primary capital markets in the UK and how they can most effectively meet the needs of issuers and investors.One focus of the paper is potential barriers to the provision of capital for growth, especially for early-stage science and technology companies. The FCA said it “would be useful” to explore the extent to which current market structures and regulation reinforce a short-term focus in issuers and investors, thereby hindering the provision of “patient capital”.The FCA said that discussions with “pre-IPO” companies indicated a need for technical changes to be made to listing rules, but also “raised the question of whether a more fundamental reassessment might be valuable, focusing particularly on ways in which different forms of primary market structure and regulation might better support scale-up and patient capital, which are particularly crucial for early-stage science and technology companies”. It cited concerns that the UK’s primary equity markets were proving less effective at providing a means for companies to raise capital for further growth and development.  The regulator said there have been significant changes in secondary capital markets, such as a shift towards algorithmic trading strategies and the separation of primary from secondary markets. These changes were seen by some as having eroded the effectiveness of the primary markets and having led to a focus on short-term trading rather than long-term investment considerations, the FCA said.Market regulation is seen by some as contributing to such a short-term focus, with “trends in market structure and market regulation […] seen by some to be mutually reinforcing”, it added.However, it also said that these views were not shared by all, and that “some stakeholders point to the Financial Reporting Council’s Stewardship Code and the establishment of the Investor Forum as recent improvements to the effectiveness of primary markets in supporting a more patient approach”.“Nonetheless, we are keen in this DP [Discussion Paper] to explore some of the themes that have emerged in this area,” it added.The FCA also asked for feedback as to whether alternative market structures could support “a more patient, long-term approach”, such as a transitional market to sit between fully private and fully public markets.The regulator asked long-term investors to indicate how they value different aspects of the current public equity market model, such as corporate transparency, investor stewardship, corporate governance requirements, or the ability to trade.The FCA also asked for views on whether there is a role for a UK primary debt multilateral trading facility, to encourage more overseas companies to raise debt finance in the UK.The FCA’s discussion paper can be found here.last_img read more

La Liga: Barca now relying on Real Madrid dropping points – Suarez

first_imgIt was the Blaugrana’s sixth successive trip to Vigo in which they have failed to win and this could prove one of the most costly – if Real Madrid beat basement side Espanyol on Sunday, they go two points clear at the top of the table.“The sensations are negative after that, we have lost two points in the fight for La Liga”, Suarez said after the game, as cited by ESPN. “We had it in our own hands and now we have to hope that Real Madrid drop points. The sensation is one of frustration because we have given up two points.Read Also: Video: Ramos fires home wonder free kick against Real Mallorca“Both teams have tough games to come. This was a complicated place to come, as Villarreal will be next week, and Atletico Madrid at home in midweek. The sensations are that we’ve lost two points and we have to correct things to improve.”Barcelona host in-form Atletico Madrid on Tuesday before a trip to Villarreal next Sunday.FacebookTwitterWhatsAppEmail分享 Luis Suarez admits Barcelona are now relying on other teams in the title race in La Liga if they are to retain the league title.Advertisement Loading…center_img The Uruguayan striker netted twice in Saturday’s clash at Celta Vigo but it was not enough for Quique Setien’s side, who dropped points for the second time in three matches.Goals from Fedor Smolov and Iago Aspas – with a well-placed free-kick late on – earned a point for Celta, who indeed could and should have won the game late on but Nolito spurned a glorious opportunity.last_img read more

‘Imperious’ Man City shouldn’t be worried about Champions League draw, claims Ray Wilkins

first_imgRay Wilkins expects Manchester City to qualify from the Champions League group stages ‘quite comfortably’, despite being drawn against the toughest opponents in this season’s competition.City will face Juventus, Sevilla and impressive German outfit Borussia Mönchengladbach in Group D, which will provide more of a test than their Premier League rivals.Man United have been drawn against PSV Eindhoven, CSKA Moscow and Wolfsburg; Chelsea will play Porto, Dynamo Kiev and Maccabi Tel-Aviv in Group G; while Arsenal will face Bayern Munich once again, along with Olympiakos and Dinamo Zagreb.Despite claiming two Premier League titles, City have struggled to perform at Europe’s top table since their big-money takeover, with the Blues never progressing past the last 16.But, following their ‘imperious’ start to the season, former England captain Wilkins believes Manuel Pellegrini’s side will storm to the knock-out stages.Speaking on the Alan Brazil Sports Breakfast, the Aston Villa assistant coach said: “It’s a tough group, but when you look at the squad Manchester City have, and the way they’ve started the Premier League, you would expect them to qualify quite comfortably, because they do look exceptional“They shouldn’t be worrying about anybody. They’ve got probably one of the best squads in world football, so should they be worrying about Borussia Monchengladbach?“They way City have started, they’ve been absolutely imperious.“It’s not just the football, it’s the speed in which they’re playing as well – the ball is like a pinball machine with them.“Chelsea – for me – are the team to beat in the Premier League, but City just tore them apart.“I don’t think they should worry about anyone in the Champions League, because they have a squad of players who are quite exceptional.”last_img read more