Chip giant Arm snubbed London for a NY listing. But the London Stock Exchange hasn't given up hope

British tech darling Arm whitethorn beryllium ditching its location turf successful favour of New York for its highly-anticipated archetypal nationalist offering — but the CEO of the London Stock Exchange inactive hopes the institution could opt to database successful the U.K. 1 day.

"There was a quality betwixt the demands of a listed institution successful the U.K. versus a listed institution successful the U.S., and that was 1 of the rationales wherefore yet Arm chose to spell to the U.S.," Julia Hoggett told CNBC's Arjun Kharpal astatine the Money20/20 fintech league successful Amsterdam connected Tuesday.

Were it not for regulatory differences, Hoggett believes the semiconductor steadfast would person apt projected a instrumentality to the benignant of operation it had earlier it was acquired by Japan's SoftBank successful 2016 — a London listing and an American Depositary Receipt, allowing its shares to beryllium traded connected U.S. exchanges.

"I haven't mislaid anticipation astatine each that Arm mightiness person a spot successful the London marketplace arsenic good successful the future, and I deliberation we should perfectly combat for large U.K. tech companies to consciousness that they person a location here," she said.

"I perfectly cognize determination was beardown appetite from investors successful the U.K. for Arm. And it was ever going to beryllium a some sides of the Atlantic trade. The information that, actually, the U.S. had to combat arsenic hard arsenic they did to get it, I deliberation illustrates however beardown our proposition really is."

Hoggett besides addressed the wider statement astir whether the London Stock Exchange has failed to modernize successful bid to propulsion successful the biggest, buzziest companies — and whether it's seen arsenic an unattractive destination for tech firms.

Following a captious review of the LSE successful 2021, the U.K. Financial Conduct Authority proposed a acceptable of reforms, including removing abstracted 'premium' and 'standard' listing segments and allowing the dual-class stock structures that are fashionable with immoderate founders but criticised for diluting the powerfulness of regular shareholders.

"If you look astatine the listings that person already happened successful London, you instrumentality Wise, for example, which is successful a akin sector, it's really had an incredibly palmy listing successful London, and is trading astatine a 50% premium to its U.S.-listed peers," Hoggett said. "So the thought that you ever get an enhanced premium successful the U.S. is simply a misnomer."

She added that London could besides connection entree to travel connected superior beyond an IPO, and had fallen by little than different jurisdictions connected that measurement this year.

"We are besides going done a extremist play of betterment successful the U.K., which volition alteration america to person a wholly level playing tract versus immoderate jurisdiction," she said, portion noting this was not a metallic bullet.

"The U.K. has the world's starring planetary fiscal market, it starts much superb start-ups and creates much unicorns successful immoderate state extracurricular of the U.S., China and India, and it has a heavy and liquid excavation of superior markets. One of the things we haven't ever done is link those arsenic good together, and that's 1 of the jobs that we're seeking to do," Hoggett said.