Thomson Reuters London Delisting: An Arbitrage Opportunity

Thomson Reuters' London listing has come to an end

Reuters (TRI) was the first supplier of regular price data to the London Stock Exchange, but today announced its delisting from the London market. The London listing latterly accounted for just 5% of Reuters' overall traded volume and typically traded at a discount of around 10%. Today that gap is rapidly closing.

There have been substantial short positions in Thomson Reuters shares for some time, on both sides of the Atlantic. Some arbitrage traders have played on the possibility of convergence between the two, and the New York listing is usually more heavily utilized. A good example of a successful arbitrage trade.

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Comments

[User 435980:]

That attachment shows nothing about the arb. For all who arent familiar with the UK market, you will get hit with stamp duty tax on the long side of this trade which will chew into profits. You will also need to hedge out your FX exposure on both sides. This trade is not as simple as one would be set up to believe.

Jun 24 08:27 AM