LSE/Primarybid Deal is Like Putting Lipstick on a Pig

LSE/Primarybid Deal is Like Putting Lipstick on a Pig

Sascha Ragtschaa

CEO at WeOwn

Views 1393

LSE/Primarybid Deal is Like Putting Lipstick on a Pig

22.11.2019 10:15 am

Levelling the playing field for retail and institutional investors is a step in the right direction, but it’s too little, too late in terms of engendering real change. Investing in new interface technology without addressing fundamental issues with the stock exchange model is really just putting lipstick on a pig. The London Stock Exchange is still utilising the same antiquated legacy environment, and the investment model is still reliant on intermediaries – Primarybid is just another neo broker – so it’s not actually widening access to IPOs. This partnership doesn’t address fundamental problems such as cost and risk.

Rather than big players making attempts to appear innovative, we need a new model for the stock exchange – one focused on providing a fairer, balanced marketplace for all types of investor. And one that uses technology to cut out middlemen and create a better working model, rather than focussing on a shiny user experience.

Tokenisation and blockchain technology have shown real capacity to reduce counter-party risks and enable real-time settlement, both of which are tangible benefits to both listing companies and participating investors. This is where real change will come from. We need to look towards a blockchain-based exchange model that will address underlying efficiency gaps and major systemic risks within the equity space, providing the true innovation we need to give retail investors a better deal.

Latest blogs

Granville Turner Turner Little

The Lockdown Money Revolution

Many Brits have found that lockdown has been beneficial for their money, having cut back on personal spending and managing to put away some extra cash. According to eToro, Brits with unspent discretionary income are set to accumulate £75.5bn in Read more »

Sandra Higgins Sysnet Global Solutions

Are You ‘Prescribing’ the Right Security Solution to Your Merchants?

When it comes to leading a healthy lifestyle, eating the right food, taking regular exercise, and maintaining a positive mindset are key. However, despite these best intentions and practices, you still might not get all the nutrients your body needs Read more »

Robert Flowers DivideBuy

It Doesn’t Have to Be the End – How Retailers Can Grow in Light of COVID-19

It’s no news that the retail industry has been flipped on its head by the COVID-19 pandemic. Due to the lockdown, most in-store operations have been shut down, and nationwide furloughs, reduced pay and steady streams of income at risk have fuelled a Read more »

n/a n/a

4 Ways to Protect Your Small Business Against Cyber Attacks

Just because you are running a small scale business doesn’t mean you are beyond the reach of hackers and attackers. Many small businesses have this thought, which is why they do not invest in their cybersecurity. Unfortunately, every year small Read more »

Kirston Winters MarkitSERV, IHS Markit

IBOR transition update: €STR grabs a foothold?

In the latest development in the IBOR transition, on the weekend of July 25th, we saw the major CCPs perform the much-anticipated Euro discounting and price alignment transition from using EONIA to EuroSTR (a.k.a. €STR) for all Euro OTC interest Read more »

Related Blogs

Francesca Campanelli Axyon AI

How Fund Managers Can Use AI to Retain Current Investors and Rebuild Client Confidence

After months of market volatility and challenging conditions, fund managers are starting to see a light at the end of the Covid-19 tunnel. Countries are starting to relax their lockdown measures and restart economies, with stock markets reacting Read more »

Chris Labrey Econocom

Don’t Delay on Technology Investment

In today’s uncertain economic climate, many businesses are loath to make significant decisions before the UK government solidifies a Brexit plan. As a result, many organisations are playing a waiting game. While this might be financially prudent, Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel