The head of a UK-based fintech unicorn has urged the London Stock Exchange (LSE) to merge with New York’s Nasdaq to secure the City market’s future. Barney Hussey-Yeo, founder of AI fintech Cleo, described the current state of the market as “completely broken” in an interview with City AM, citing a series of recent delistings. Hussey-Yeo, who established his $1bn company in 2016, pointed to the upcoming autumn Budget as a crucial moment to revitalise market prospects. He emphasised the need for political commitment to drive necessary changes.
One of Hussey-Yeo’s bold proposals involves merging the LSE with Nasdaq, suggesting this would significantly enhance the capital depth and listing opportunities for UK and US companies. He argued that the UK, as the sixth-largest economy globally, has limited capital, necessitating a “pan UK-American stock exchange” to address this constraint.
Hussey-Yeo also mentioned a new task force initiated by Rachel Reeves and US Treasury Secretary Scott Bessent as a chance to influence economic growth. He proposed that a capital markets merger and regulatory reforms could enable firms to “instantly passport” across both nations. He further stated that trusted nations and their regulators should cooperate, simplifying operations for firms across jurisdictions.
In 2020, Hussey-Yeo moved Cleo to the US, frustrated by the UK’s risk-averse environment. His critique of London’s tech market coincides with Rachel Reeves’ efforts to stimulate fintech listings through her Financial Services Growth and Competitiveness Strategy. The market recently suffered a setback when money transfer firm Wise opted for a primary listing in the US.
Hussey-Yeo noted that UK fintech scaling up before relocating to the US is “very natural,” describing the UK as an “incubator economy.” Cleo is among several UK fintech firms considered potential listing candidates, with its revenue rising 106% to $136m last year and subscriber numbers increasing by 42%. Looking ahead, Hussey-Yeo is closely observing his fintech peers following Klarna’s New York debut and speculation about potential floats from Monzo and Revolut.
