Do You Want To Know More About The London Stock Exchange?Summary: The London Stock Exchange is one of the three major (ranked by monetary value) exchanges on earth. The LSE also has the distinction of being the oldest in the world. "The City" has a major impact on the movement of many other markets around the world and in the modern globalised economy, it's reach is far and deep. Therefore, this section will look at some of the things that an investor in London might need to know.
The London Stock Exchange can chart it's history back over 300 years to the early 17th century coffee houses of London. These days, it is home to some of the world's biggest and best companies which enables it to play a dominant role in international finance.
The London Stock Exchange actually operates in a number of related areas. These are: Equity markets The LSE enables companies from around the world to raise the capital they need to grow, by listing securities on it's efficient, transparent and well-regulated markets. Through our two primary markets – the Main Market and AIM – companies can gain access to one of the world’s deepest and most liquid pools of investment capital. Another unique feature of the LSE is the existence of the investment trust market. Investment trusts are closed eded collective investments - or to you and me, companies established to invest large sums of money. Some of the oldest trusts were formed over 100 years ago. Trading services LSE offers the trading platforms used by broking firms around the world to buy and sell securities. The systems provide fast and efficient access to trading, allowing investors and institutions to tap quickly into equity, bond and derivative markets. Internationally recognised standards of regulation and market practice make the London markets some of the most attractive and liquid in the world. More than 300 firms worldwide trade as members of the London Stock Exchange. Market information LSE supplies high-quality, real-time prices, news and other information to the global financial community. Strong relationships with data vendors help ensure the markets receive the information they depend upon. Derivatives The LSE has a derivatives business which is a diversification beyond traditional core equity markets. EDX London is the international equity derivatives exchange. The UK covered warrants market is one of the world's fastest growing investment markets. Many of these markets were enabled by the 'Big Bang', a set of reforms introduced on 27th October 1986 that transformed the working rules and practices of the stock exchange. The Benefits of London London has a number of advantages as a financial centre provided by history and good fortune. Firstly and rather obviously, it is an English speaking centre. Since English happens to be the language of many businesses and finance around the world, this makes it a preferred location to other European centres such as Milan, Paris, Zurich and Frankfurt. Secondly, it is conveniently located in the centre of the time zones (Greenwich, as in GMT, is actually very close to Canary Wharf). The markets open in London as the trading day in Tokyo is ending, and it closes a couple of hours before the opening bell in New York. It should also be noted that the historical links around the world of the British Commonwealth mean that there are many democratic and legal systems that are based on the British Parliament and English Common Law. Such trust and familiarity are difficult for other locations to overtake. There are also a number of tax havens with very strong links to the United Kingdom and London. Financial powerhouses such as Jersey and Guernsey, the Isle of Man, Gibraltar and the Cayman Islands all have such ties. Since the fall of the Soviet Union, London has become a location of choice for Russian oligarchs which has lead to a number of Russian firms choosing the LSE for a listing. This combination of factors makes London and the London Stock Exchange major players in global finance and so it's workings will receive a lot of attention on this site. Click here to visit the LSE website:
London Stock Exchange
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