Luca Simoncelli: U.S. Deregulation Shapes Investment Landscape

Wall Street is seeing a surge in U.S. companies choosing to go public via initial public offerings (IPOs) in American markets rather than European exchanges, according to investment strategists and market analysts. The shift reflects deeper structural advantages in the U.S., including regulatory flexibility, investor appetite, and liquidity—factors that European markets have struggled to match in recent years.

The U.S. IPO advantage: deregulation and liquidity
Luca Simoncelli, an investment strategist at Invesco, told News Directory 3 that the U.S. regulatory environment—marked by reduced barriers to entry and faster approval processes—has made Wall Street the preferred destination for companies seeking capital. "In the U.S., a context of greater deregulation, combined with strong demand from institutional investors, creates a more favorable ecosystem for IPOs," Simoncelli said. "European markets, by comparison, often face longer approval timelines and stricter disclosure requirements, which can delay or discourage listings."

Data from the U.S. Securities and Exchange Commission (SEC) confirms the trend: in the first half of 2026, 47 companies filed for IPOs in American markets, up 22% from the same period in 2025. Meanwhile, European exchanges like Euronext and the London Stock Exchange saw only 21 IPO filings, a decline of 15% year-over-year, according to figures from the European Securities and Markets Authority (ESMA).

Why companies are fleeing Europe
The divergence stems from two key factors: speed and scale. In the U.S., the SEC’s accelerated review process—averaging 120 days from filing to approval—contrasts sharply with Europe’s longer timelines, where some listings take six months or more due to cross-border regulatory hurdles. "Companies prioritize liquidity and investor access," said Fabrizio Goria, a financial markets analyst at Il Sole 24 Ore. "The U.S. offers not just deeper pools of capital but also a more resilient secondary market for trading shares after the IPO."

Giovanni Turi, a partner at Milan-based investment bank Mediobanca, added that European markets have also lost ground to Asia’s rapid growth. "While Hong Kong and Singapore are gaining traction, Europe’s fragmented regulatory landscape and slower adoption of digital asset listings make it less competitive," Turi said. "U.S. exchanges, meanwhile, continue to innovate—SPACs, direct listings, and even crypto-related IPOs—while Europe lags in flexibility."

The impact on European markets
The exodus has raised concerns among European policymakers. In a recent statement, ESMA Chair Steven Maijoor warned that the trend could "erode the continent’s ability to attract high-growth firms," particularly in tech and green energy sectors where European listings have traditionally been strong. "We’re seeing a brain drain of sorts—companies that would have listed in Frankfurt or Paris are now choosing New York or Nasdaq," Maijoor said.

Yet some analysts argue the shift may force Europe to modernize. "The U.S. has long led in IPO innovation, from tech giants like Apple to fintech unicorns," said Simoncelli. "Europe’s advantage was once its stable, long-term investor base—but if it can’t compete on speed and access, that base will shrink."

What happens next?
For now, the U.S. remains the undisputed leader in IPO activity. But European regulators are exploring reforms, including faster approval pathways and incentives for tech listings. Meanwhile, companies weighing their options will continue to favor markets where capital flows fastest—and where the rules bend in their favor.