What funds the PTM levy?

The PTM levy is primarily financed through a levy on transactions conducted on the London Stock Exchange (LSE) that exceed £10,000. This funding mechanism is designed to ensure that the costs associated with the operation of the PTM, an authority responsible for managing certain regulatory and compliance activities, are covered by those who engage in significant market transactions. As such, it aligns the cost burden with the users of the services rendered by the PTM, ensuring greater accountability and funding stability.

The other options do not align with the established funding sources for the PTM levy. Transactions in banking or those involving fines from regulatory bodies play different roles within the financial ecosystem, and government grants do not provide a sustainable funding model for such a specific regulatory function. The focus on transactions above a certain threshold creates a direct link between trading activity and the funding required for oversight, making it a practical and efficient solution.