Beware of 'frothy' US investment firms, LSE boss warns

David Schwimmer warns of risk from special purpose acquisition companies - Spacs - if plans to liberalise market rules go ahead

A frothy" US market for so-called Spac" investment companies could end poorly for some investors, with the trend a risk to UK investors if plans to liberalise market rules go ahead, according to the chief executive of the London Stock Exchange.

The proposals regarding special purpose acquisition companies (Spacs) - blank cheque" shell companies that raise money first and seek businesses to buy later - were announced earlier this week as part of a sweeping package of reforms designed to attract more fast-growing companies to list in London, in an attempt to maintain the UK's position as a leading global financial centre post-Brexit.