IR Monitor – 23 July 2025

In this week’s newsletter:

• LSE plots 24-hour trading: The Telegraph reports on plans by the London Stock Exchange to tap into demand from night owl investors
• FT: Public markets ‘under threat’ from listings slump. According to the World Federation of Exchanges, private capital has undermined the role of stock markets
• Is the United Kingdom due a retail boom? The UK currently has the lowest level of retail investment among G7 countries according to IR Impact
• Shareholder engagement: what works and what doesn’t
• Barron’s on why dividends are better than stock buybacks
• And finally … be careful what you say on the earnings call

This week’s news

LSE plots 24-hour trading to attract night owl investors – The Telegraph

The London Stock Exchange Group is fast-tracking plans to launch 24-hour trading for UK-listed shares, aiming to revitalise the struggling market and attract a new wave of global and Gen Z investors, The Telegraph reports. Inspired by the rise of after-hours trading in the US and the always-on nature of crypto markets, the move could make British stocks more accessible to night owl traders using smartphone apps. However, the plan faces pushback from traditional fund managers, who rely on fixed closing prices to value trillions in assets. If the plans go ahead, it could mark a transformative moment for the future of London’s financial markets, opening the door to a trading environment that runs around the clock with rather significant implications for the investor relations function too.

Public markets ‘under threat’ from listings slump – Financial Times

Global stock exchange executives have raised concerns about the declining appeal of public markets as private capital grows in influence. According to the World Federation of Exchanges (WFE), IPOs have dropped 22% over five years, with just 1,133 listings in 2024. In a letter signed by leaders from 18 major exchanges, WFE CEO Nandini Sukumar warned that the core role of public markets in driving innovation, employment and fair wealth distribution is at risk. Particularly in Europe and Asia, companies are increasingly opting to stay private longer, drawn to alternatives like private equity and digital assets. The WFE urged regulators and investors to support public markets and bridge the gap between public and private financing. 

Is the UK due a retail boom? 

IR Impact questions whether Chancellor Rachel Reeves’ proposed reforms to combat low levels of retail investment in the UK will be enough to reignite public interest in equities. In her Mansion House speech, Reeves introduced the ‘Leeds’ reforms, designed to simplify access to capital markets and reduce regulatory barriers for everyday savers. New measures will allow savers to invest in Long-Term Asset Funds (LTAFs) via stocks and shares ISAs, enabling retail investors to invest in private markets for the first time. While industry groups like the Investment Association have welcomed the move, others have warned of potential risks due to valuation opacity in private assets – suggesting that these reforms will not be enough. 

Shareholder engagement: what works and what doesn’t

Shareholder dissent at Dutch AGMs dropped sharply in 2025, which has been attributed to more effective pre-AGM engagement between companies and investors, as opposed to declining ESG momentum which is the more common assumption. In IPE’s analysis of the issue, collaborative initiatives are helping companies decarbonise more effectively and encouraging progress on human & labour rights. IPE highlights that investor engagement has been most effective when shareholders are coordinated and well-informed. However, many corporate leaders still complain that investor outreach can be ill-informed, superficial or focus on irrelevant issues. 

Why divis are better than buybacks

Stock buybacks have overtaken dividends as the primary method of returning capital to shareholders, but this shift may pose risks for income-focused investors, according to Barron’s. While buybacks can boost share value, they are more vulnerable in downturns, with Deutsche Bank’s Jim Reid warning that “if a downturn hits, buybacks will stop far more quickly than dividends, potentially pulling away a key pillar of market support.” With the S&P 500’s dividend yield near historic lows, investors are urged to seek companies with strong, sustainable payouts, as reliable dividends may prove more valuable than buybacks in a volatile market.

And finally… be careful what you say on the earnings call warns Matt Levine

While explicit price-fixing is illegal, companies may still find clever ways to collaborate and keep prices high without ever meeting face-to-face. As Bloomberg’s Matt Levine explains, one method is “algorithmic collusion,” where firms use shared online pricing data to subtly nudge companies toward coordinated pricing. Another method involves earnings calls, where phrases like “we will maintain pricing discipline” can signal intentions to competitors who are listening to the calls. However, regulators are catching on and listening too as AI tools now scan thousands of transcripts for suspicious language. In the years ahead, companies will increasingly turn to AI to write their earnings-call scripts for investor algorithms to interpret, but they will need to choose their words carefully to avoid triggering the watchful eyes of regulatory AI.