London Stock Exchange

The London Stock Exchange (LSE) is a global stock exchange based in Paternoster Square in the City of London, England. It was started in 1801 and is one of the oldest stock exchanges in the world. The LSE helps companies get money by selling pieces called shares to investors. People can buy and sell these shares on the exchange.

The LSE is very important for the Natural Resources sector, especially for mining. Even after facing some challenges, it stays a top stock market in Europe. Its main index, the FTSE 100 Index, has grown a lot in recent years.

History

See also: English coffeehouses in the 17th and 18th centuries

The Royal Exchange was started by Thomas Gresham and Sir Richard Clough. It was opened by Queen Elizabeth I in 1571.

In the 1600s, stockbrokers worked from nearby coffee houses, like Jonathan's Coffee-House. A broker named John Castaing began listing prices of goods such as salt and coal in 1698.

After the Royal Exchange was destroyed in the Great Fire of London, it was rebuilt in 1669. This helped make the market more modern. Laws were made to control brokers.

Later, traders started working in the streets, called 'Exchange Alley'. In 1801, a new, regulated exchange was created, starting the London Stock Exchange.

The Exchange faced challenges during the World Wars but kept working. After World War II, new buildings and technology helped it grow. In the 1980s, changes called the "Big Bang" brought new rules and electronic trading. The Exchange moved to its current home in Paternoster Square in 2004 and still plays an important role in global finance.

Activities

The London Stock Exchange has two main markets where companies can trade. The main market has over 1,300 large companies from 60 countries. The FTSE 100 Index shows how well the 100 biggest British companies are doing.

The Alternative Investment Market is for smaller companies, including those backed by venture capital. It gives them a simpler way to raise money and grow.

The LSE also lets people trade many different financial products. These include common stock, bonds, derivatives, exchange-traded funds, debt securities, exchange-traded commodities, structured products, covered warrants, global depositary receipts (GDRs), and gilt-edged securities.

Post trade

The London Stock Exchange Group helps finish trades through its Italian branch, Borsa Italiana. It uses Cassa di Compensazione e Garanzia and Monte Titoli to keep these trades safe. These services work with many kinds of money items, like stocks, derivatives, and bonds in Italy. Monte Titoli also works with more than 400 banks and brokers to manage trades before and after they are done.

Technology

The London Stock Exchange uses a special trading platform called Millennium Exchange. This platform runs on Linux. Before this, the exchange used a different system called TradElect made by Microsoft. They switched to Linux because TradElect had some problems.

The LSE lets companies list their stocks in different currencies, mostly in GBP, but sometimes in EUR or USD. It also helps many tech companies from Israel grow their business.

Mergers and acquisitions

On 3 May 2000, the London Stock Exchange planned to merge with the Deutsche Börse, but this did not happen.

On 23 June 2007, the London Stock Exchange agreed to merge with Borsa Italiana. This created a large exchange group in Europe called the London Stock Exchange Group. In 2009, the group bought Turquoise, a trading platform across Europe.

On 9 October 2020, the London Stock Exchange sold Borsa Italiana to Euronext. The sale was completed on 29 April 2021.

On 12 December 2022, Microsoft bought a small part of the London Stock Exchange Group as part of a cloud deal.

Opening times

Normal trading sessions on the main orderbook (SETS) are from 08:00 to 16:30 local time every day except Saturdays, Sundays, and holidays. The exchange has special times for different activities, such as opening and closing auctions.

SETSqx is a service for securities that are less liquid than those traded on SETS. Auction uncrossings happen at set times during the day. The exchange is closed on holidays like New Year's Day, Good Friday, Easter Monday, May Bank Holiday, Spring Bank Holiday, Summer Bank Holiday, Christmas Day, and Boxing Day. If these holidays fall on a weekend, the next working day is also a holiday.

Arms

The London Stock Exchange does not have an official coat of arms. However, it has been granted heraldic support. This means it uses special symbols from British heraldry. These symbols show the exchange's importance and long history in the financial world.