Nathanael Williams

After the UK vote to leave the EU banks, construction firms and assest managers are weighing up the value of investing in the UK

A GROUP of anonymous former US stock exchange traders are leading a attempt to create Scotland’s first independence stock exchange in 40 years.

‘Scotex’ is the brainchild of a team of former traders from the US stock exchange Nasdaq who have the intention of being based in Edinburgh, and is an attempt to attract businesses and investing companies to Scotland as their main base of operations in the UK following the recent Brexit vote.

After the initial post-Brexit vote, the UK currency pound sterling and all stocks plummeted, and the pound dipped to a 31-year low on Tuesday. In Scotland the vote to remain in the EU was substantial, coming in at 62 per cent, and Scotland’s first minister, Nicola Sturgeon, quickly received parliamentary backing in the Scottish Parliament to explore all avenues for continuing Scotland’s membership of the European Union – potentially culminating in a second Scottish independence referendum.

“Recent developments in the UK promise to totally transform the UK capital markets landscape. A new political reality requires a new capital market for Scotland.” Scotex

A statement on the Scotex website said: “Recent developments in the UK promise to totally transform the UK capital markets landscape. A new political reality requires a new capital market for Scotland.

“Scotex is a new and innovative stock exchange that will offer capital markets access for the next generation of scientists, inventors and entrepreneurs of Scotland.

“It is crucial for Scotland that its wealth creators – now and in the future – have a visible equity capital market able to provide them with access to the capital they need to grow their companies.”

A spokesman for Scotex told CommonSpace: “This is an important moment in the history of capital markets in Scotland. Just over 50 years ago Scotland had four stock exchanges (Aberdeen, Dundee, Glasgow, Edinburgh) and since the merger with the LSE in 1973 – none.

“Trading in Scotland ended in 1973 after 129 years when the trading floor in Glasgow last closed its doors. We hope we will be able to put that right and get the access to equity capital markets that the industrious and inventive people of Scotland deserve.”

“This is an important moment in the history of capital markets in Scotland.” Scotex spokesman

When it opens trading, the plan is to have business conducted via an electronic exchange. The project is currently awaiting the outcome of an application to city watchdog the Financial Conduct Authority (FCA) for authorisation and licensing.

When pressed by CommonSpace on who is involved in the project, the Scotex spokesman declined to reveal any further information, saying that the group was waiting for the outcome of its FCA application before releasing more details.

Investors in the FTSE 100, a list of the 100 companies listed on the London Stock Exchange, have been spooked since the Brexit vote, with insurance giants Standard Life, Aviva and M&G, freezing all activity in their retail property funds. The FTSE is seen as the indicator of the prosperity of companies which fall under UK company law.

When asked by CommonSpace, Standard Life would not be pressed on the specifics of any potential plans afoot to invest in a Scots-50, but said: “We will keep all our stakeholder groups regularly updated on progress as appropriate.”

Picture courtesy of Scotex