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Streamlined Equity Management for Global Companies: The Benefits of Multi-Listing Securities

Streamlined Equity Management for Global Companies: The Benefits of Multi-Listing Securities

For companies with a global presence, managing employee equity across multiple stock exchanges can be a logistical nightmare. Juggling different trading windows, regulations and reporting requirements creates unnecessary complexity.

At J.P. Morgan Workplace Solutions, we understand the complexities of managing equity for multi-listed companies. That’s why we offer a comprehensive solution designed to streamline the process and empower both you and your participants.

What does multi-listing mean?

Multi-listings refer to companies that are listed on multiple stock exchanges. Companies that engage in multi-listings benefit from the opportunity to raise more capital and increase their investment base. Usually, the process works with international companies that have a presence in multiple markets (e.g. Canada and the United States). Major Canadian companies, for example, are also listed on US exchanges because a sizeable portion of their audience tends to be American.

This example points to another tendency of multi-listed stocks. Companies tend to approach countries that overlap with their home company on either language or culture. Because English is a common language between the US and Canada, the double listing makes sense. Yet Canadian companies are also dual listed on European stock exchanges to gain exposure to the broader European market.

Why multi-listing matters

For a global company, multi-listing securities can offer several advantages. It provides liquidity and access to a broader investment base and enhances the company’s visibility and prestige in different markets. By diversifying their listings, a company can benefit from favorable regulatory environments, manage currency risks, and facilitate nearly continuous trading across different time zones.

Additionally, listing on local exchanges can help penetrate new markets, comply with local regulations, and demonstrate a commitment to high corporate governance standards. This strategic approach helps companies optimize their capital structure and position themselves for global growth.

The challenge of multi-listed securities

However, the advantages of multi-listing come with the challenge of managing equity plans across multiple jurisdictions. This complexity can affect both the company and its employees, leading to potential inefficiencies and increased costs.

Imagine a company that’s listed on both the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE). This dual listing means that the company must navigate both the US and the UK regulatory requirements. These regulations often mean different trading windows, reporting standards and tax implications. For example, the LSE operates between 8AM and 4.30PM GMT, while the NYSE operates between 9.30AM and 4PM EST. Managing equity across these time zones and regulatory frameworks is a complicated administrative task.

J.P. Morgan Workplace Solutions offers a streamlined solution

Our platform offers regulatory compliance, optimized trading, user friendly interface for participants and real-time trade confirmations. Let’s look at how we achieve all of these benefits.

1. Designated executing partner for each listing

For global public companies with shares listed on various exchanges or in different regions and regulations, you have the ability to designate a Regulatory Authority, Regulatory Custody and executing partner for each share listing. For instance, if your company is listed on the New York Stock Exchange and the London Stock Exchange, trades executed on the US Stock Exchange will seamlessly route to the US executing partner, while sale orders submitted on the London Stock Exchange will be directed to a London-based executing partner.

This adeptly addresses the diverse needs of global public companies listed on different exchanges. Not only will this reduce the administrative burden, but it will also minimize the risk of errors and delays.

2. Seamless participant experience

For your participants, the experience is seamless. Participants can log in to their desktop portal or user-friendly app to submit a sale order. They have full control, choosing the specific share listing , the number of shares to sell, and even the currency in which they want to receive their proceeds. Plus, they can conveniently track their order’s progress and view and print trading confirmation.

Participants can be assured orders are in line with specific exchange times. This flexibility ensures that employees can manage their equity effectively, regardless of their location or time zone.  

3. Real-time trade confirmations

Keeping track of orders is also simplified with equity management software. Participants receive real-time trade confirmations, allowing them to monitor their transactions closely without administrative burden. This transparency builds trust and ensures that employees feel confident when managing their equity.

Ready to simplify your multi-listed equity management?

Don’t let the complexities of multi-listed equity hold you back. J.P. Morgan Workplace Solutions offers a holistic approach to managing multi-listed securities, allowing you to streamline the process. We can provide a fully integrated equity compensation management solution so that your employees worldwide can take full advantage of stock ownership and your company can thrive in the global marketplace.

If you would like to see for yourself how our software works, book a one-on-one consultation with us today and we’ll demonstrate how our award-winning software can help your company.

Please Note: This publication contains general information only and J.P. Morgan Workplace Solutions is not, through this article, issuing any advice, be it legal, financial, tax-related, business-related, professional or other. J.P. Morgan Workplace Solutions’ Insights is not a substitute for professional advice and should not be used as such. J.P. Morgan Workplace Solutions does not assume any liability for reliance on the information provided herein.