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LSE waives of registration fees for market makers to deal with coronavirus

LSE coronavirus
The stock exchange also allowed companies listed on its market to defer payment of dividends for up to 30 days

The London Stock Exchange(LSE) has revealed that it would waive off registration fees for market makers to add liquidity to the market which is suffering due to the outbreak of the coronavirus, which originated in the Chinese city of Wuhan.

 

In a statement, the stock exchange said, “To help provide support to liquidity in stocks admitted to London Stock Exchange’s Main Market and AIM amid volatile trading conditions, a three-month waiver on registration fees for market makers has been applied until the end of June 2020.”

It also said that it will allow companies listed on its market to defer payment of dividends for up to 30 days due to coronavirus hitting markets.

LSE added, “As a result of market conditions and issuers implementing their contingency plans, the Exchange has received enquiries from issuers and their advisers regarding deferral or cancellation of their dividend payments.”

It added that a deferral period of up to 30 business days for payment of a dividend will be permitted, but no more than 60 business days after the record date.

Last week, the LSE also revealed that it has no plans to suspend trading, even though the market has become highly volatile due to investors dumping shares due to the coronavirus outbreak.

The stock exchange pointed out that it is important that markets remain open to support companies that will continue to need access to capital and to ensure pricing is conducted in a fair and transparent manner for retail and institutional investors who need ongoing access to liquidity.

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