London Stock Exchange-Ppts
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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'.
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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.
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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/ -
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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."
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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.
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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.
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