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also raised some monies these are the earliest evidence of organised trading in marketable securities in london royal exchange edit the royal exchange building in 1889 the inside view of the royal exchange at london 18th century the royal exchange in 1804 after gresham s royal exchange building was destroyed in the great fire of london it was rebuilt and re established in 1669 this was a move away from coffee houses and a step towards the modern model of stock exchange 12 the royal exchange housed brokers merchants and merchandise this was the birth of a regulated stock market which had teething problems in the shape of unlicensed brokers in order to regulate these parliament passed an act in 1697 that levied heavy penalties both financial and physical on those brokering without a licence it set a fixed number of brokers at 100 but this was later increased as the size of the trade grew this limit led to several problems one of which was that traders began leaving the royal exchange either by their own decision or through expulsion and started dealing in the streets of london the street in which they were now dealing was known as exchange alley or change alley it was suitably placed close to the bank of england parliament tried to regulate this and ban the unofficial traders from the change streets traders became weary of bubbles when companies rose quickly and fell so they persuaded parliament to pass a clause preventing unchartered companies from forming after the seven years war 1756 1763 trade at jonathan s coffee house boomed again in 1773 jonathan together with 150 other brokers formed a club and opened a new and more formal stock exchange in sweeting s alley this now had a set entrance fee by which traders could enter the stock room and trade securities it was not an exclusive location for trading as trading also occurred in the rotunda of the bank of england fraud was also rife during these times and in order to deter such dealings it was suggested that users of the stock room pay an increased fee this was not met well and ultimately the solution came in the form of annual fees and turning the exchange into a subscription room the subscription room created in 1801 was the first regulated exchange in london but the transformation was not welcomed by all parties on the first day of trading non members had to be expelled by a constable in spite of the disorder a new and bigger building was planned at capel court william hammond laid the first foundation stone for the new building on 18 may it was finished on 30 december when the stock exchange was incised on the entrance first rule book edit london stock exchange in 1810 in the exchange s first operating years on several occasions there was no clear set of regulations or fundamental laws for the capel court trading in february 1812 the general purpose committee confirmed a set of recommendations which later became the foundation of the first codified rule book of the exchange even though the document was not a complex one topics such as settlement and default were in fact quite comprehensive with its new governmental commandments 13 and increasing trading volume the exchange was progressively becoming an accepted part of the financial life in the city in spite of continuous criticism from newspapers and the public the government used the exchange s organised market and would most likely not have managed without it to raise the enormous amount of money required for the wars against napoleon foreign and regional exchanges edit after the war and facing a booming world economy foreign lending to countries such as brazil peru and chile was a growing market notably the foreign market at the exchange allowed for merchants and traders to participate and the royal exchange hosted all transactions where foreign parties were involved the constant increase in overseas business eventually meant that dealing in foreign securities had to be allowed within all of the exchange s premises just as london enjoyed growth through international trade the rest of great britain also benefited from the economic boom two other cities in particular showed great business development liverpool and manchester in 1836 both the manchester and liverpool stock exchanges were opened some stock prices sometimes rose by 10 20 or even 30 in a week these were times when stockbroking was considered a real business profession and such attracted many entrepreneurs with booms came busts and in 1835 the spanish panic hit the markets followed by a second one two years later the exchange before the world wars edit debenture of the stock exchange issued 1 january 1899 by june 1853 both participating members and brokers were taking up so much space that the exchange was now uncomfortably crowded and continual expansion plans were taking place having already been extended west east and northwards it was decided that the exchange needed an entire new establishment thomas allason was appointed as the main architect in march 1854 the new brick building inspired by the great exhibition stood ready this was a huge improvement in both surroundings and space with twice the floor space available by the late 1800s the telephone ticker tape and the telegraph had been invented those new technologies led to a revolution in the work of the exchange first world war edit stock certificate of the london stock exchange issued on 31 march 1920 declared as a qualification share the capital of the exchange from its incorporation consisted of 20 000 shares held only by its members with trustees and directors required to hold 10 qualification shares as the financial centre of the world both the city and the stock exchange were hit hard by the outbreak of world war i in 1914 prices surged at first due to fears that borrowed money was to be called in and that foreign banks would demand their loans or raise interest the decision to close the exchange for improved breathing space and to extend the august bank holiday to prohibit a run on banks was hurried through by the committee and parliament respectively the stock exchange ended up being closed from the end of july until the new year causing street business to be introduced again as well as the challenge system the exchange was set to open again on 4 january 1915 under tedious restrictions transactions were to be in cash only due to the limitations and challenges on trading brought by the war almost a thousand members quit the exchange between 1914 and 1918 when peace returned in november 1918 the mood on the trading floor was generally cowed in 1923 the exchange received its own coat of arms with the motto dictum meum pactum my word is my bond second world war edit in 1937 officials at the exchange used their experiences from world war i to draw up plans for how to handle a new war the main concerns included air raids and the bombing of the exchange s perimeters one suggestion was a move to denham buckinghamshire this never took place on the first day of september 1939 the exchange closed its doors until further notice and two days later world war ii was declared the exchange opened its doors again six days later on 7 september as the war escalated into its second year the concerns for air raids were greater than ever on the night of 29 december 1940 one of the greatest fires in london s history took place the exchange s floor was hit by a clutch of incendiary bombs which were extinguished quickly trading on the floor was now drastically low and most was done over the phone to reduce the possibility of injuries the exchange was only closed for one more day during wartime in 1945 due to damage from a v 2 rocket trading continued in the house s basement post war edit the trading floor in 1955 after decades of uncertain if not turbulent times stock market business boomed in the late 1950s this spurred multiple officials to find new more suitable accommodation in 1967 work on the new stock exchange tower began the exchange s new 321 feet 98 metres high building had 26 storeys with council and administration at the top and middle floors let out to affiliate companies queen elizabeth ii opened the building on 8 november 1972 it was a new city landmark with its 23 000 sq ft 2 100 m 2 trading floor the stock exchange tower pictured from atop the national westminster tower in 1983 1973 marked a year of changes for the stock exchange first two trading prohibitions were abolished a report from the monopolies and mergers commission recommended the admittance of both women and foreign born members on the floor second in march the london stock exchange formally merged with the eleven british and irish regional exchanges including the scottish stock exchange 14 this expansion led to the creation of a new position of chief executive officer after an extensive search this post was given to robert fell there were more governance changes in 1991 when the governing council of the exchange was replaced by a board of directors drawn from the exchange s executive customer and user base and the trading name became the london stock exchange the ftse 100 index pronounced footsie 100 was launched by a partnership of the financial times and the stock exchange on 3 january 1984 this turned out to be one of the most useful indices of all and tracked the movements of the 100 leading companies listed on the exchange ira bombing edit main article london stock exchange bombing on 20 july 1990 a bomb planted by the provisional irish republican army ira exploded in the men s toilets behind the visitors gallery the area had already been evacuated and nobody was injured 15 about 30 minutes before the blast at 8 49 a m a man who said he was a member of the ira told reuters that a bomb had been placed at the exchange and was about to explode police officials said that if there had been no warning the human toll would have been very high 16 the explosion ripped a hole in the 23 storey building in threadneedle street and sent a shower of glass and concrete onto the street 17 the long term trend towards electronic trading platforms reduced the exchange s attraction to visitors and although the gallery reopened it was closed permanently in 1992 big bang edit main article big bang financial markets the biggest event of the 1980s was the sudden de regulation of the financial markets in the uk in 1986 the phrase big bang was coined to describe measures including abolition of fixed commission charges and of the distinction between stockjobbers and stockbrokers on the london stock exchange as well as the change from an open outcry to electronic screen based trading in 1995 the exchange launched the alternative investment market the aim to allow growing companies to expand into international markets two years later the electronic trading service sets was launched bringing greater speed and efficiency to the market next the crest settlement service was launched 21st century edit in 2000 the lse s shareholders voted to become a public limited company london stock exchange plc the lse also transferred its role as the united kingdom s listing authority to the financial services authority edx london an international equity derivatives business was created in 2003 in partnership with om group the exchange also acquired proquote limited a new generation supplier of real time market data and trading systems paternoster square lseg occupies the building that takes up much of the right side of this picture london stock exchange office interior at paternoster square the old stock exchange tower became largely redundant with big bang which deregulated many of the lse s activities computerised systems and dealing rooms replaced face to face trading in 2004 the lse moved to a brand new headquarters in paternoster square close to st paul s cathedral in 2007 the lse merged with borsa italiana creating london stock exchange group lseg the group s headquarters are in paternoster square paternoster square was the initial target for the protesters of occupy london on 15 october 2011 attempts to occupy the square were thwarted by police 18 police sealed off the entrance to the square as it is private property a high court injunction having previously been granted against public access to the square 19 the protesters moved nearby to occupy the space in front of st paul s cathedral 20 the protests were part of the global occupy movement on 25 april 2019 the final day of the extinction rebellion disruption in london 13 activists glued themselves together in a chain blocking the entrances of the lse 21 22 the protesters were all later arrested on suspicion of aggravated trespass 22 extinction rebellion had said its protesters would target the financial industry and the corrosive impacts of the sector on the world we live in and activists also blocked entrances to hm treasury and the goldman sachs office on fleet street 23 in 2019 the london stock exchange introduced the green economy mark a designation awarded to companies that derive at least 50 of their revenues from environmental or sustainable products and services with more than 80 issuers receiving the mark by mid 2020 24 according to a 2020 financial conduct authority report approximately 15 of british adults reported having investments in stocks and shares 25 on 3 march 2022 the lse declared it would suspend trading in gdr securities for russian firms subsequent to the 2022 russian invasion of ukraine 26 activities edit a crowd on the stock exchange floor london between 1910 and 1920 primary markets edit there are two main markets on which companies trade on the lse the main market and the alternative investment market main market edit the main market is home to over 1 300 large companies from 60 countries 27 the ftse 100 index footsie is the main share index of the 100 most highly capitalised british companies listed on the main market 28 alternative investment market edit the alternative investment market is lse s international market for smaller companies a wide range of businesses including early stage venture capital backed as well as more established companies join aim seeking access to growth capital the aim is classified as a multilateral trading facility mtf under the 2004 mifid directive and as such it is a flexible market with a simpler admission process for companies wanting to be publicly listed 29 secondary markets edit the securities available for trading on lse 30 common stock bonds including retail bonds derivatives exchange traded funds debt securities exchange traded commodities structured products covered warrants global depositary receipts gdrs gilt edged securities post trade edit through the exchange s italian arm borsa italiana the london stock exchange group offers clearing and settlement services for trades through cassa di compensazione e garanzia cc g and monte titoli 31 32 it is the groups central counterparty and covers multiple asset classes throughout the italia...
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