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UK investors may need euros for tech IPOs

IPOs listing on the proposed Nasdaq iX are likely to face German regulation and euro valuation.

The Financial Times reports that bankers are predicting an outflow of capital-raising from the London market to Frankfurt, forcing UK investors to buy euros before applying for shares listing on the Nasdaq iX, even for UK-domiciled companies.

British institutional investors are already expressing concern that such a development would expose them to severe currency risk.

They believe they will face a significant barrier relative to euro investors.

The London Stock Exchange and Deutsche Borse announced on Wednesday they had entered into a joint venture with the US-based Nasdaq to create a new pan-European exchange for high growth stocks.

The joint venture follows their decision to merge their main exchanges to form iX (International Exchange).