From Complementary to Competitive: The London and UK Provincial Stock Markets

For many decades there were stock exchanges operating in provincial cities across Britain. We analyze why companies listed on these markets, and how this changed over time. We find that the provincial exchanges had traditionally been complementary to London, providing a trading venue for smaller regional companies. However, they gradually lost their uniqueness, and were increasingly competing with London by listing similar stocks. Much of this change can be explained by shifts in industrial composition leading to more companies being headquartered and listed in the capital, and many of the remaining regional firms cross-listing in London to achieve certification.