Plans launched for Edinburgh stock exchange

Glasgow Stock Exchange
Glasgow Stock Exchange. Buchnan Street, Glasgow. (now the Urban Outfitters store).

Scotland could be set to get its first independent stock exchange in 40 years.

The last trading floor north of the border closed its doors in 1973 after 129 years.

That was in Glasgow, but according to reports the new Scotex, the brainchild of a team of former traders from the US stock exchange Nasdaq - the second largest in the world -  would be based in Edinburgh.

The Scottish capital is UK’s second largest centre for financial services and the fourth largest in Europe.

Scotex said the project would be backed by Scots investors and would create a “Scots-50” index to rank Scotland’s leading listed companies.

It said English, Welsh and Irish companies would also be able to apply to join Scotex and shares in London Stock Exchange companies would also be compatible.

Trading will be done via an electronic exchange.

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.”

Edinburgh, Dundee and Aberdeen also had their own stock exchanges at one time, but like the rest of the UK’s trading floors, all were merged to create the London Stock Exchange (LSE), which has gone on to become one of the world’s most important markets.

A spokesman for Scotex said: “This is an important moment in the history of capital markets in Scotland.

“Just over 50 years ago Scotland had four stock exchanges and since the merger with the LSE in 1973 - none.

“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.”

The project will be subject to the outcome of an application to City watchdog the Financial Conduct Authority.