London Stock Exchange

Type Stock exchange

Location London, England, UK
Founded 1571; 446 years ago (The Royal Exchange) :1801; 216 years ago London Stock Exchange
Owner London Stock Exchange Group Key people Donald Brydon (Chairman) Xavier Rolet (CEO)
Currency Pound sterling No. of listings 2,292 (as of September 2016)
Market cap 6.06 trillion GBP (Dec 2014) Volume 1.16 trillion GBP (Dec 2014)
Indices FTSE 100 Index, FTSE 250 Index, FTSE 350 Index,, FTSE SmallCap Index, FTSE All-Share Index

London Stock Exchange is one of the worlds oldest stock exchanges and its history back more than 300 years.
the third-largest stock exchange in the world[2] by this measurement

History
o Coffee House
During the 17th century, stockbrokers were not allowed in the Royal Exchange due to their rude manners. They had to
operate from other establishments in the vicinity, notably Jonathan's Coffee-House. At that coffee house, a broker
named John Casting started listing the prices of a few commodities, exchange rates and certain key provisions such as
salt, coal and paper in 1698. Originally, this was not a daily list and was only published a few days of the week
o Royal Exchange
ter Gresham's Royal Exchange building was destroyed in the Great Fire of London, it was rebuilt and re-established in
1669. This was a move away from coffee houses and a step towards the modern model of stock exchange.[7]
Parliament brought out an act in 1697 that levied heavy penalties, both financial and physical to those brokering
without a licence. It also set a fixed number of brokers (at 100), which was later increased as the size of the trade
o First Rule Book
In the Exchange's first operating years, on several occasions there was a clear set of regulations or fundamental laws
missing for the Capel Court trading. In February 1812, the General Purpose Committee confirmed a set of
recommendations, which later became the foundation of the first codified rule book of the Exchange
o Foreign and regional exchanges
After the war and facing a booming world economy, foreign lending to countries such as Brazil, Peru and Chile was a
growing market. Notably, the Foreign Market at the Exchange allowed for merchants and traders to participate, and the
Royal Exchange hosted all transactions where foreign parties were involved Just as London enjoyed growth through
international trade, the rest of Great Britain also benefited from the economic boom. Two other cities, in particular,
showed great business development, Liverpool and Manchester.
o Big Bang"
The biggest happening of the 1980s was the sudden deregulation of the financial markets in the UK in 1986. The
phrase "Big Bang" was coined to describe measures including abolition of fixed commission charges and of the
distinction between stockjobbers and stockbrokers on the London Stock Exchange, In 1995 the Exchange launched
the Alternative Investment Market, Two years later the Electronic Trading Service (SETS) was launched In 2000, the
Exchange's shareholders voted to become a public limited company, In 2007 the London Stock Exchange merged
with Borsa Italiana, creating the London Stock Exchange Group (LSEG
Activities
o Primary markets
Issuer services help companies from around the world to join the London equity market in order to gain access to
capital. The LSE allows companies to raise money, increase their profile and obtain a market valuation through a
variety of routes, thus following the firms throughout the whole IPO process. In 2004 the Exchange opened a Hong
Kong office and has attracted more than 200 companies from the Asia-Pacific region.
o Secondary markets
` The securities available for trading on the London Stock Exchange:
Bonds, including retail bonds
Common stock
Covered warrants
Exchange-traded funds
Exchange-traded products
Global depositary receipts (GDRs)
 Structured products
There are two main markets on which companies trade on the LSE:
1. Main Market
he main market is home to Over 1,300 large companies from 60 different countries. Over the past 10 years[when?] over
366 billion has been raised through new and further issues by Main Market companies
2. Alternative Investment Market ("AIM") The Alternative Investment Market is LSEs international market for smaller
growing companies. A wide range of businesses including early stage, venture capital backed as well as more established
companies join AIM seeking access to growth capital.

Statistics
There are currently 2,600 companies from over 60 countries[17] listed on the London Stock Exchange, of which 1151 are on
AIM, 44 on the Professional Securities Market and 10 on the Specialist Funds Market. Pence sterling (GBX) is a
subdivision of Pounds sterling (GBP). Pounds are official currency of the United Kingdom, but pence are often used when
trading stocks. e.g. a stock traded at GBX 2,360 is valued at 23.60.
As of June 2011, the AIM had 56 companies as per country of operations from Africa, 41 from China, 26 from Latin
America, 23 from Central & Eastern Europe and 29 from India & Bangladesh, making it one of the worlds leading growth
markets. Since its launch in 1995, more than 67 billion have been raised on AIM. The total market value of these
companies was 3.9 trillion. The daily turnover traded in July 2011 was 4.4 billion (5.0 billion) and the daily number of
trades 611,941.

Opening times[edit]
Normal trading sessions on the main orderbook (SETS) are from 08:00 to 16:30 local time every day of the week except
Saturdays, Sundays and holidays declared by the exchange in advance. The detailed schedule is as follows:

1. Trade reporting 07:1507:50

2. Opening auction 07:5008:00
3. Continuous trading 08:0016:30
4. Closing auction 16:3016:35
5. Order maintenance 16:3517:00
6. Trade reporting only 17:0017:15