london stock exchange-ppts

8/3/2019 London Stock Exchange-Ppts

1/21


2/21

History

It began in 1698, John Castaing began publishing lists of stock

prices called 'The Course of the Exchange and Other Things'.

In 1761, 150 of these stockbrokers started a club for buying and

selling shares in a dealing room.

In 1972 a new office with a 23,000 square foot trading floor was

opened for the exchange by Queen Elizabeth II on Threadneedle Street.

England and Ireland merged with the London Stock Exchange.

In 1986 there was a deregulation of the exchange, called the 'Big

Bang'.


3/21

In 1995, the London Stock Exchange opened the Alternative

Investment Market(AIM).

In 2000, it made the decision to go public, and began listing their

shares on their own exchange in 2001.In 2004, the exchange left their building on Threadneedle Street to

move to their current location on Paternoster Square near St. Paul's

Cathedral.


4/21

Profile

Address : 10 Paternoster Square, London

Web Site : www.londonstockexchange.com

Trading Hours : Monday - Friday, 8:00 am - 4:30 pm

GMT(Greenwich Mean Time)

Securities : Stocks, bonds, derivatives

Trading System : Electronic (SETS and SEAQ)

Key Staff : Chairman - Chris Gibson-Smith. Chief Executive

- Clara Furse
http://www.londonstockexchange.com/http://www.londonstockexchange.com/


5/21

About London Stock Exchange (LSE)

It is the most important exchange in Europe.Over 3,000 companies and with 350 of the companies coming from

50 different countries.It is comprised of two different stock markets:

Main Market

Alternative Investment Market (AIM)The LSE is completely electronic, but different shares are traded on

different systems:

SETS automated system

SEAQ systemIt also has a new and growing exchange for equity derivatives

called EDX London.


6/21

The London Stock Exchange Group are Europes leading exchange

group in:

Cash equities: with 48% of the FTSEurofirst 100 by market

capitalisation and the most liquid order book by value and volume

traded

Fixed income: MTS is Europes largest electronic government

bond market

Post trade services: Monte Titoli and CC&G offer the most

efficient post trade services in Europe.


7/21

Levels

As at 31 July 2010, the Exchange listed 2,713companies,

consisting of:

UK Main Market: 1,114

International Main Market: 327

Alternative Investment Market(AIM): 1,222

Professional Securities Market (PSM): 44

Specialist Fund Market (SFM): 6


8/21


9/21

What London Stock Exchange Group

do?

Over 500 members worldwide trade on the LSE and Borsa

Italiana. The systems provide fast and efficient trading at very

low cost allowing investors and institutions access to equity,

fixed income and derivatives markets.

They supply high quality real time prices and trading datacreating the transparency.


10/21

Capital Markets: issuer services help companies to raise capital

through a choice of markets, while trading services providing active

and efficient trading in a wide range of securities.

Information and Technology Services: Provide the global

financial community with high quality real-time and historical pricesas well as technology solutions that currently power exchanges,

depositaries, brokerages and regulatory bodies in the US, Europe,

Africa and Asia-Pacific region.Post Trade Services : Provide a wide range of efficient post trade

services including clearing, routing, netting, settlement and custody.


11/21

Investor Relations

London Stock Exchange Group plc is Europes leading exchange

group in cash equities with about 50% of the FTS Eurofirst 100 by

market capitalisation.

The most liquid order book by value and volume traded.

Through MTS they provide Europes largest electronic

government bond market.

They offer the most efficient post trade services in the eurozone.

Situated at the heart of the worlds financial markets.


12/21

Corporate Responsibility

Corporate Responsibility at the Group is organised into 4 keypillars of activity or key focus areas:

Community

People

Ethics and governanceEnvironmentEach pillar is represented on a Group-wide Corporate

Responsibility Committee.Individual members of the Committee are drawn from across

geography, market and discipline.For co-ordinating through the Committee their overall corporate

responsibility strategy and engagement.


13/21

Exchange

It is estimated that by 1695, there were 140 joint-stock companies.

The trade in shares was centred around the City's Change Alley in

two coffee shops: Garraway's and Jonathan's.

The broker, John Castaing, published the prices of stocks and

commodities called The Course of the Exchange.


14/21

Licensing of brokers

In 1697, a law was passed to "restrain the number and ill-

practice of brokers

Stockjobbers" following a number of insider trading and

market-rigging incidents.

It required all brokers to be licensed and to take promising to

act lawfully.


15/21

Membership of foreigners

Previously, all members of the London Stock Exchange had to

be British as per Rule 21.

The nationality requirement was lifted in 1970.

This allowed foreigners to become members of the London

Stock Exchange, the first approved membership being that of

Egyptian prince Abbas Hilmi.


16/21

Merger attempt by NASDAQ

In December 2005, the London Stock Exchange rejected a 1.6

billion takeover offer from Macquarie Bank.

The LSE received an unsolicited approach from NASDAQ valuing

the company at 2.4 billion.

NASDAQ also purchased 2.69 million additional shares, resulting

in a total stake of 15%.

On 20 August 2007, NASDAQ announced that it was abandoning

its plan to take over the LSE.


17/21

Proposed merger with TMX Group

On 9th February 2011, the London Stock Exchange Group

announced that they had agreed to merge with the Toronto-based

TMX Group.

The owners of the Toronto Stock Exchange, creating a combined

entity with a market capitalization of listed companies equal to

3.7 trillion.

Xavier Rolet(CEO of the LSE Group) will head the new

enlarged company

While TMX Chief Executive Thomas Kloet will become the

new firm president.


18/21

Products and Services

Equity markets: enables companies from around the world to

raise capital. There are four primary markets:

The Main Market.

AIM, established in 1995 for smaller companies.

The Professional Securities Market, for raising capital

through debt securities or depositary receipts.

The Specialist Fund Market, "designed purely for the needs

of highly specialised investment entities seeking institutional,

professional and highly knowledgeable investors."


19/21

Trading services: Market for trading in a range of securities,

including UK and international equities, debt, covered

warrants, exchange traded funds (ETFs), Exchange Traded

Commodities (ETCs), fixed interest, contracts for difference

(CFDs) and depositary receipts.

Information Services: Provides real-time prices, news and

other financial information. It owns the Regulatory News

Service.

Derivatives: The Exchange manages EDX London, a

contributor to derivatives business created in 2003 with an aim

of bringing the cash equity and derivatives markets closer

together.


20/21

Technology Issues

The LSE's current trading platform is its own Linux-based edition

named "Millennium Exchange".

The old trading platform was based on Microsoft's .NET

Framework, was developed by Microsoft and Accenture.

For Microsoft, LSE was a good combination of a highly visible

exchange and yet a relatively modest IT problem.

After suffering extended downtime and unreliability the LSE

announced in 2009 that it was planning to switch to Linux in 2010.

In February 2011, the London Stock Exchange finished the switch

to Linux.


21/21

london stock exchange-ppts

Documents