A CRITICAL OVERVIEW OF THE TRANSPARENCY AND COMPETITIVENESS OF THE LONDON STOCK EXCHANGE

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Abstract

This paper explores the operational activities of the London Stock Exchange in the 21st century to provide an overview of its operational transparency and competitiveness; the competition among its market participants and how it competes with other developed stock exchanges around the world. Evidence was found that suggests the manifestation of both competitive and uncompetitive practices in the London Stock Exchange. The presence of the key elements that enhance the competitiveness of the market, such as continued technology transformation, strategies that promote globalisation and regulatory flexibilities was observed. Simultaneously, signs of non-competitiveness such as high membership and annual fees, transaction costs and stamp duties were also observed.

Keywords: Competitive Forces, Transparency, London Stock Exchange, Settlement, Clearing, IPO’s, Transaction Costs

JEL Classification: D02, D21, G15

Received: 23.05.2018
Accepted: 24.07.2018
Published online: 30.07.2018

How to cite this paper: Sanusi, M. S. (2018). A critical overview of the transparency and competitiveness of the London stock exchange. Risk Governance and Control: Financial Markets & Institutions, 8(2), 74-83. https://doi.org/10.22495/rgcv8i2p5