Select Committee on Trade and Industry Written Evidence


APPENDIX 16

Memorandum submitted by London Stock Exchange

  We believe that there are increasing opportunities opening up in Latin America, particularly in Brazil and Chile, but also in Peru, Colombia, Argentina and Uruguay.

  Historically there have been strong cultural and time zone links between the US and Latin America, with the majority of overseas issuers from the region listing and trading in New York. However, growing demand for international capital and a desire to access the European market place, as well as increasing dissatisfaction with US regulation, has led to an increasing number of enquiries from companies and advisers in the region regarding the benefits of listing and trading in London.

  The Exchange's international team have recently visited the region and begun to actively market to attract issuers. They experienced a very positive reception for the message that London's depth of institutional capital, its leading regulatory and governance regime and the skills of its advisory community can help companies from Latin America access funds to support their growth. Already these early efforts are paying off. In October, we were delighted to welcome Hochschild Mining Plc, the first Main market primary listing from Peru, which raised £270 million.

  However, we recognise that one of the limitations for attracting more companies from Latin America is a general lack of awareness regarding the London offering. We are seeming to address this through our direct activities, as well as working closely with the corporate advisory community, the Corporation of London, UK Trade and Investment and the British Embassies in the countries concerned. As enthusiastic supporters of the Chancellor's initiative to promote the City and UK financial services abroad, we also look forward to political support for raising awareness in Latin America as appropriate.

  We are currently in the process of finalising our specific marketing plans, trips and resourcing for the region in 2007-08. When complete I would be happy to provide you with additional relevant information.

7 December 2006





 
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