London's 'junior' stock market, launched in 1995 as the Alternative Investment Market (AIM), has developed over the last 12 years into a significant player on the world financial scene. In 2007, the London Stock Exchange commissioned LSE Consulting to facilitate independent research delivered by a team of LSE academics that would provide analysis and comment on AIM. The report which they produced presented an authoritative guide to the development of AIM as a stock market for growing companies, its governance and the dynamics of the exchange, its contribution to the UK economy, and an analysis of the factors which have contributed to its growth.
Approach and methodology
The report, compiled by senior academic faculty from the LSE's Financial Markets Group (FMG), Centre for Analysis of Risk and Regulation (CARR), Law Department, and the Department of Management, independently examined the history of AIM, as well as looking at its current position in relation both to the Exchange and to other SME markets using a number of key performance indicators. It drew on published material, including statistics from the London Stock Exchange and from the World Federation of Exchanges and reports produced by brokers and consultants. Interviews were conducted with London Stock Exchange executives and market participants, including senior executives from AIM-quoted companies, some of which were profiled in the report, and representatives from brokers, Nomads and investors.
Solution and benefits
Initially proposed to be delivered in the form of two short reports, through close consultation with the client throughout the project, it was decided that these twin research strands should be combined, and a single, comprehensive, more unified report be launched instead. The full report, released electronically for circulation, was supported by a professionally-published short report, which, through adherence to strict project milestones, was released to coincide with the Exchange's anniversary, allowing the client to maintain its continued press activity to publicise a significant piece of academic research, which can be referenced over a long period.