About the London Stock Exchange :

The London Stock Exchange is the most important exchange in Europe and one of the
largest in the world. It lists over 3,000 companies and with 350 of the companies coming
from 50 different countries, the LSE is the most international of all exchanges.
The London Stock Exchange is comprised of two different stock markets: the Main Market
and the Alternative Investment Market (AIM). The Main Market is solely for established
companies with high performance, and the listing requirements are strict. Approximately
1,800 of the LSE's company listings trade on the Main Market, and the total market
capitalization is over 3,500 billion. The Alternative Investment Market on the other hand
trades small-caps, or new enterprises with high growth potential. Over 1,060 companies
list on this market, with a total capitalization of 37 billion.
The LSE is completely electronic, but different shares are traded on different systems.
Highly liquid shares are traded using the SETS automated system on an order driven basis.
This means that when a buy and sell price match, an order is automatically executed. For
securities that trade less regularly, the London Stock Exchange implements the SEAQ
system, where market makers keep the shares liquid. These market makers are required to
hold shares of a specific company and set the bid and ask prices, ensuring that there is
always a market for the stock.
The LSE also has a new and growing exchange for equity derivatives called EDX London,
created in 2003. In 2004, EDX traded an average of 382,599 contracts per day. Its aim is to
become the leading derivatives market in the world.
PRODUCTS

Exchange Traded Funds (ETFs)

ETFs are open-ended index tracking funds listed and traded on exchanges like shares. 
They allow investors to gain exposure to a diverse range of assets and offer simple and
efficient access to developed and emerging markets, broad and sector indices.  By trading a
single share, users can effectively gain access to an entire index without the burden of
investing in each of the constituent stocks making ETFs a highly efficient and cost effective
investment tool.
 

ETFs offer the key advantages of an exchange-traded product:

 transparency - ETFs are supported by dedicated market makers who quote
tradeable prices throughout the trading day
 security - all contracts are cleared through the central counterparty

Exchange Traded Commodities (ETCs)

ETCs are simple and transparent open-ended securities which trade on regulated
exchanges. ETCs enable investors to gain exposure to commodities without trading futures
or taking physical delivery.
It is no wonder that more and more investors seeking commodities exposure are turning to
ETCs and that this increasingly mainstream alternative asset class has experienced
exponential growth since its inception.
Why issue ETCs
Exchange Traded Notes (ETNs)

ETNs are notes that track the performance of an underlying asset.

They are simple and transparent securities tradeable on exchange like ordinary shares.
 
Similar to Exchange Traded Funds (ETFs) and traded and settled exactly like normal shares
on their own dedicated sector. ETNs have market maker support with guaranteed liquidity,
enabling investors to gain exposure to commodities, on-exchange, during London hours.
 
ETNs can be held in an ISA or SIPP and, if held directly, are eligible for Capital Gains Tax
treatment.
Covered warrants are are issued by financial institutions and are listed as full tradeable
securities on the London Stock Exchange.  They are flexible tools offering leveraged
exposure to a wide range of underlyings such as equities, baskets, indices, currencies and
commodities.  They are quoted throughout the trading day and offer all the benefits of
transparency and liquidity.
A covered warrant gives the holder the right, but not the obligation, to buy ('call' warrant)
or to sell ('put' warrant) an underlying asset at a specified price (the 'strike' price or
'exercise' price) by a predetermined date.  The price paid for this right is the 'premium' and
with covered warrants you cannot lose more than this initial premium paid.  They are
limited liability instruments so there are no further payments or margin calls required to
maintain a covered warrant position.   Covered warrants offer a flexible alternative to
private investors who seek to gain the leverage benefits of derivatives, but who wish to
limit their risk

Structured products

Listed Structured Products are issued by financial institutions and are listed as full
tradeable securities on the London Stock Exchange.  They are flexible tools offering
leveraged or protected exposure to a wide range of underlyings such as equities, currencies
and commodities.  They offer users varying levels of capital protection and as they are
quoted throughout the trading day offer the benefit of transparency and liquidity.
Structured Products are typically issued as 'certificates' and there are various types
depending on how the products track the underlying and what levels of protection are
offered.  Trackers replicate the performance of the underlying asset on a one-for-one basis
and there are also Reverse Trackers which move on one-for-minus one relationship with
the underlying.  Participation products allow investors to participate in upside or downside
gains and offer leverage.  Yield Enhancement products allow investors to benefit from
coupon payments or capital growth and Capital Protected products offer exposure to the
underlying with various degrees of guarantee of the the capital invested.

Debt securities
As one of the world's longest established and most reputable stock exchanges, the London
Stock Exchange provides an excellent opportunity for debt issuers to access one of the
largest pools of capital and to increase the profile of their issue.
Issuers can choose to admit securities to trading on the Main Market or the Professional
Securities Market.  Debt securities admitting to trading on our markets range from simple
Eurobonds and bonds to complex asset-backed issues, high yield bonds and convertible or
exchangeable bonds.

We remain determined to stay at the frontier of developments in the debt markets. We

work closely with all market participants to facilitate the process of admission to trading of
debt securities and to best address issuers’ needs.
Swift and cost effective issuance

The Exchange is aware of the challenges facing issuers and their advisers in competitive
capital markets, and we work closely with all parties involved to ensure a swift and cost
effective debt issuance process.

Deep pool of capital

The Exchange offers prospective issuers access to the deepest pool of global capital, with
debt issuers raising total of £1.65 trillion on our markets as at the end of October 2007. Our
markets provide access to the world's deepest capital pools, with total assets listed
amounting to more than £6 trillion, giving our issuers the widest financial exposure.
Quick and easy listing process

Our professional team works hard to ensure a quick and easy listing process and we are in
daily contact with the UK Listing Authority (UKLA), the competent authority for listing in
the UK. 
Competitive listing fees

Our listing fees are competitive and we do not charge an annual fee for listing debt,
significantly reducing the cost of capital raised via our markets.

Adviser expertise

Listing in London provides unique proximity to key debt managers and advisers and a wide
audience of financial and legal experts, which can help your plans and ease the issuance
process in the future.

REITs

A REIT is a company that owns and manages property on behalf of shareholders. A REIT
can contain commercial and/or residential property. REITs provide a way for investors to
access property assets without having to buy property directly. In the UK, REITs can apply
for ‘UK-REIT’ status, which exempts the company from corporate tax.

Attaining UK-REIT status removes the potential for “double taxation” at both the corporate
and the investor level and is intended to help align returns from property help within REIT
structures with that held directly.

The introduction of a UK-REIT regime, combined with the traditional strengths of London’s
capital markets, has created opportunities for the growth of the property investment
sector. A UK-REIT enjoys all the benefits of any other company listed on the Main Market,
in addition to the advantages outlined below. The introduction of UK-REITs gives investors
wider opportunities for accessing an important alternative class.