… as Rolet defends relaxing UK listing rules

LONDON Stock Exchange boss Xavier Rolet has defended plans to change UK listing rules in order to attract lucrative state-controlled companies such as Saudi Aramco on to the exchange.

London is fighting for a slice of the $2 trillion (£1.6 trillion) Aramco float in what will be the world’s biggest ever initial public offering, but proposals from the Financial Conduct Authority to tweak the rules for state-controlled companies have whipped up debate. The Institute of Directors and the UK’S investor community have already attacked plans to win over the oil giant. However, Mr Rolet hit back at critics yesterday by arguing that the country needed to “keep up with the times”.

“It should be a surprise to no one if listing rules are from time to time refreshed by the regulator to take into account the reality that we live in,” he said, though he refused to comment specifically on the Aramco float. “[I’m] not sure why there’s so much focus on this particular point when this is happening everywhere else in the financial services industry,” he said, adding that there is a general lack of understanding about the sector.

The plan to sell only 5pc of the oil giant has been criticised, because the regulator usually blocks a premium listing unless at least 25pc is sold. However, Mr Rolet said this was more of a liquidity test than a hard and fast rule – Glencore only offered investors 15pc.

The LSE’S first-half earnings report showed a revenue boost of 18pc on last year to £853m, and a profit bump of 20pc to £398m.

It rewarded investors with a 20pc dividend boost to 14.4p.