Björn Sibbern, the chief executive of the Six Swiss Exchange, has offered a contrarian view on the much-discussed flight of companies to US stock markets, suggesting the phenomenon is more acute for London than for continental European bourses.
A Nuanced View on Transatlantic Listings
In an interview, Sibbern directly addressed the prevailing narrative of a European initial public offering (IPO) exodus. He argued that while the trend is real, its impact is not uniform across the continent. "That's more a UK thing," Sibbern stated, pointing out that the Swiss and other European exchanges have not experienced the same level of outflow as the London Stock Exchange.
His comments come amid intense scrutiny of London's ability to retain and attract major listings, with several high-profile companies opting for New York in recent years. Sibbern's analysis suggests the challenges facing the UK's financial hub may be more structural or specific to its market dynamics compared to its European peers.
Competition and the Swiss Advantage
Sibbern, who took the helm at Six Swiss Exchange in March 2022, is not complacent about competition from American giants like the Nasdaq and the New York Stock Exchange. He acknowledged the fierce global battle for lucrative listings. However, he emphasised the distinct strengths of the Swiss market, which he believes insulate it from the worst of the trend.
The Swiss exchange benefits from a deep pool of domestic capital and a stable of high-quality, global companies. Sibbern highlighted that the Swiss market has maintained a robust pipeline of IPOs and that companies there see a clear advantage in listing close to their home investor base and operational headquarters. This local ecosystem, he implied, provides a resilience that London is currently struggling to match.
Implications for London and the Future
Sibbern's remarks reframe the debate on capital market competitiveness. They shift the focus from a blanket "Europe vs. US" narrative to a more granular examination of why specific financial centres, notably London, are feeling more pressure post-Brexit.
The interview underscores a critical period for the London Stock Exchange as it seeks to reform its rules and appeal to revive its fortunes. While European exchanges like Six are also competing for business, Sibbern's view indicates they perceive their primary battle differently. The challenge for London appears to be twofold: competing with the sheer scale and valuation premiums of the US, while also fending off resurgent European rivals who are capitalising on their own stable, specialist niches.
Ultimately, Sibbern's perspective suggests that the path to recovery for London's IPO market may require unique solutions, distinct from those needed in Zurich or Frankfurt. The diagnosis that its ailment is particularly British may shape the policy prescriptions to come.
