London Stock Exchange (LSE)

It is a peculiarity of British system of stock exchanges that they are in high degree of concentration.

As of today there are 22 active stock exchanges in Great Britain. The oldest stock exchange of Great Britain and Europe is LSE. Founded in 1801, it is also one of the largest stock exchanges in the world, with many overseas listings as well British companies. Advantageous position of London allows the stock exchange to operate during American and Asian sessions.

LSE itself is a public company and its shares are traded on stock exchanges including LSE. LSE is considered to be the most international trading floor. About 50% of international transactions with shares are concluded on LSE.

Members of the stock exchange are divided into 4 categories:
  • Broker-dealers, the main function is to execute orders of investors on exchange purchase of securities although they make transactions using their own funds
  • Market-makers – members of the stock exchange quoting certain securities during business day
  • Brokers or dealers act as intermediaries on gilts between market-makers
  • Money brokers which are entitled to lend funds and securities to other members of the stock exchange

The London Stock Exchange has four core areas. Equity markets - enables companies from around the world to raise capital. There are four primary markets; Main Market, Alternative Investment Market (AIM), Professional Securities Market (PSM) and Specialist Fund Market (SFM).Trading services - highly active market for trading in a range of securities, including UK and international equities, debt, covered warrants, exchange traded funds (ETFs), Exchange Traded Commodities (ETCs), reits, fixed interest, contracts for difference (CFDs) and depositary receipts. Market data information - The London Stock Exchange provides real-time prices, news and other financial information to the global financial community. Derivatives - A major contributor to derivatives business is EDX London, created in 2003 to bring the cash equity and derivatives markets closer together.

Formerly transactions with negotiable options, common shares, currency and indices were executed on the stock exchange; at present, they are executed on London International Financial Futures and Options Exchange. The trading on LSE is mainly executed through «TALISMAN» computer-assisted system.

LSE is opened from Monday through Friday from 07:00 to 15:30 (GMT).