The London Stock Exchange in the U.K.

What is the London Stock Exchange?

The London Stock Exchange is one of the world’s largest and most influential markets for trading shares and other securities. It has been at the heart of London’s financial services industry for more than 250 years and currently operates under the name LSE Group. The LSE provides trading, clearing, settlement, and depository services for investors, companies, and financial intermediaries. The exchange also offers a variety of services to companies ranging from listings and corporate governance advice to investor relations and investment research. It is located in the St. Swithin’s Lane area of London’s financial district.

London Stock Exchange history

The concept of a stock exchange in London can be traced back to 1690 when traders gathered outside the Royal Exchange building to trade securities. However, it wasn’t until 1801 that a permanent building was constructed and listed companies began to trade. The London Stock Exchange was established in 1801 as a result of a merger between two existing exchanges, the Buttonwood Trading Society and the Coffee House. The exchange was initially housed at the Royal Exchange in Cornhill, before moving to a new building at Capel Court in 1903. The London Stock Exchange acquired the Victoria Building in 1969 and re-opened it as the new home for the exchange in 1972. The London Stock Exchange was acquired by Deutsche Börse in 2001.

LSE today

The London Stock Exchange is regulated by the Financial Conduct Authority and is one of two remaining exchanges in London, alongside the Alternative Trading System (ATS). It offers both a conventional open outcry trading floor and an electronic trading platform. The exchange has a market capitalization of £1.6 trillion (approximately $2.1 trillion) and it welcomed over 1,200 companies to its main market in 2017. At the heart of the LSE’s global offering is the Main Market, which is the primary market for listed securities in the United Kingdom. The Main Market is accessible by all investors, regardless of their net worth, through an online share dealing platform. The LSE also operates several secondary markets, including the Alternative Investment Market (AIM), the International Financial Futures and Options Exchange (IFFO), and the IPE Market.

LSE owned entities

- London Stock Exchange Group: The LSE Group is one of the world’s leading markets for listing and trading securities. The Group operates trading platforms in London, New York, and Asia, and provides a wide range of investor services.

- Turquoise: Turquoise is an Alternative Trading System that enables companies to raise capital by issuing equity and debt securities. Turquoise is one of Europe’s largest ATS venues and is operated by the LSE Group.

- LCH: LCH is the world’s largest clearing house with a focus on derivatives trading. The LCH’s clearing house operates in London, New York, Singapore, and Hong Kong and serves a wide range of customers, including banks, brokers, asset managers, and corporate end-users.

Key LSE brands

- Eurex: Founded in 1991, Eurex is a European futures exchange owned by the London Stock Exchange Group.

- FTSE: The Financial Times Stock Exchange (FTSE) is one of Europe’s most recognized equity indices. The FTSE started in 1975 as global equity indices, but now also provides coverage of fixed income, commodities, and money markets.

- LIFFE: The London International Financial Futures Exchange (LIFFE) is an electronic futures and options exchange owned by the London Stock Exchange Group.

- MTS: The Multi-Disciplinary Terminal System is an electronic system for trading securities at the London Stock Exchange.

Conclusion

The London Stock Exchange is one of the world’s largest and most influential markets for trading shares and other securities. It has been at the heart of London’s financial services industry for more than 250 years and is owned by Deutsche Börse. The exchange has a market capitalization of £1.6 trillion (approximately $2.1 trillion) and welcomed over 1,200 companies to its main market in 2017. The exchange operates trading platforms in London, New York, and Asia and provides a wide range of investor services. The London Stock Exchange also owns several other companies operating in the fixed-income, commodities, and money markets industries. The London Stock Exchange is not only historical but very influential globally, the building itself still holds on to tradition.