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The London Stock Exchange (LSE) is watching its reputation unravel as businesses ditch it faster than at any time since the 2008 financial crisis famously called “The Great Recession.” 
The numbers are shocking: 88 companies have either delisted or moved their primary listing away from London in 2024, leaving just 18 newcomers to plug the gap. They’re sprinting toward what they see as greener pastures in New York. 
Despite endless promises, reforms, and marketing campaigns from the UK government, regulators, and the LSE itself, nothing has stemmed the tide. 
<h3 id="span-style-font-weight-400-ftse-100-firms-lead-the-charge-out-of-london-span">FTSE 100 firms lead the charge out of London</h3> 
Big players from the FTSE 100 index, London’s crown jewels, are among the deserters. Since 2020, six heavyweight companies have made the leap to New York, taking their combined market valuations—worth nearly £280 billion—with them. To put that into perspective, that’s about 14% of the total market cap of the FTSE 100 gone in just four years. 
The latest defector? Ashtead, an equipment rental giant worth £23 billion. Its board has had enough of London’s sluggish markets and sees a brighter future in New York. 
It joins the likes of gambling juggernaut Flutter, valued at £39 billion, and building materials colossus CRH, which boasts a £55 billion valuation. Both have jumped ship within the past 18 months, citing better liquidity and a deeper pool of investors in the U.S. 
The reasons behind this corporate flight aren’t exactly a mystery. Liquidity is king, and U.S. markets offer it in spades. Businesses moving their primary listings to New York are lured by a bigger pool of investors and higher trading volumes. 
Goldman Sachs <a href="https://www.goldmansachs.com/insights" rel="nofollow noopener" target="_blank">pointed out</a> last year that the gap between the valuations of U.S.-listed and UK-listed companies is widening. The FTSE 100, dominated by old-economy sectors like energy and mining, has gained a respectable 8% this year. 
But compare that to the tech-heavy S&amp;P 500 in the U.S., which has surged by a jaw-dropping 27%. For fast-growing companies and their investors, the choice is clear. 
<h3 id="span-style-font-weight-400-london-s-reforms-too-little-too-late-span">London’s reforms: Too little, too late</h3> 
The UK government has tried to patch the sinking ship with a raft of reforms. Changes to pension rules and listing regulations were supposed to make the LSE more competitive. David Schwimmer, the LSE’s chief executive, once claimed that the notion of higher valuations in the U.S. was a “myth.” 
Sharon Bell, a strategist at Goldman Sachs, said businesses chasing higher valuations feel forced away from London by a lack of domestic investor interest. One FTSE 100 CEO called Ashtead’s decision to move “very sad.” 
The government likes to trot out examples of “confidence” in the UK’s capital markets, like the upcoming London listing of Canal+, a French pay-TV operator expected to be valued at over €6 billion. But one listing doesn’t fix a systemic problem. Even mid-tier FTSE 250 executives are skeptical. 
And then there’s the political angle. The “America First” rhetoric from U.S. leaders only adds more momentum to the corporate migration. 
<h3 id="span-style-font-weight-400-a-market-in-crisis-or-an-opportunity-for-crypto-span">A market in crisis or an opportunity for crypto?</h3> 
Meanwhile, the LSE has tried to reinvent itself as a hub for crypto enthusiasts. In May 2024, it introduced crypto exchange-traded notes (ETNs), offering institutional investors exposure to Bitcoin and Ethereum without directly holding the assets. It’s a bold decision, but it hasn’t done much to offset the broader market decline. 
The ETNs are physically backed, meaning the underlying Bitcoin and Ethereum are securely held, mostly in cold storage. The instruments are for professional investors, as retail traders remain locked out under FCA rules. 
Since their launch, they have had mixed results. Bitcoin is holding steady at around £60,000, while Ethereum trades at roughly £4,000. But crypto is no magic bullet for the LSE’s woes. Even as it pivots to new asset classes, the exchange’s traditional equities market continues to shrink. 
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London Stock Exchange getting dumped at highest rate since the Great Recession

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