History of London Stock Exchange (LSE)

What you keep in mind is that the London Stock Exchange is one of the most well-known stock exchanges in the world. It is the primary stock exchange in the United Kingdom. Moreover, the London Stock Exchange is the largest stock exchange in Europe.

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Originated over 300 years ago, the regional exchanges were merged in 1973 in order to create the Stock Exchange of Great Britain and Ireland. Its current name is the London Stock Exchange (LSE).

People should keep in mind that the Financial Times Stock Exchange (FTSE) 100 Share Index is the dominant index.

The above-mentioned stock exchange is physically located in the city of London. More than a decade ago, it merged with the Milan Stock Exchange, the Borsa Italiana, to form the London Stock Exchange Group.

London Stock Exchange and its importance

The history of Europe’s largest stock exchange dates back to 1698, when broker John Castaing began posting the prices of stocks and commodities.

However, by the beginning of the 19th century, it became clear that a formal system was needed in order to fight fraud as well as unethical traders. Importantly, brokers agreed to a set of rules and paid a membership fee to belong to the exchange, hence paving the way for the first regulated stock exchange in London.

Through its primary markets, the LSE provides cost-efficient access to some of the world’s deepest as well as most liquid pools of capital. Also, the London Stock Exchange is home to a wide range of companies and provides electronic equities trading for listed companies.

It is the most international of all stock exchanges, with thousands of companies from more than 60 countries, and the LSE is the premier source of equity-market liquidity, benchmark prices, as well as market data in Europe. Moreover, linked by partnerships to international exchanges in Asia and Africa, Europe’s largest stock exchange intends to get rid of the cost and regulatory barriers from capital markets worldwide.

Have you heard about the Main Market?

The Main Market of the LSE is one of the world’s most diverse stock markets, with companies making up 40 different sectors.

For example, a listing on Europe’s largest stock exchange’s Main Market gives companies access to real-time pricing, deep pools of capital, etc.

There are several different ways for companies to join the Main Market.

Option number one: Premium

What you need to know is that the Premium segment applies only to equity shares issued by commercial trading companies. Remember that Premium listing issuers are required to meet the United Kingdom’s super-equivalent rules, which are higher compared to the minimum requirements of the European Union (EU). Notably, because of these higher standards, Premium-listed companies may have access to a lower cost of capital, and investors seeking out companies that adhere to the highest standards. As a reminder, a company with a Premium listing also has the possibility of being included in one of the Financial Times Stock Exchange (FTSE) indices.

Option number two: Standard

This segment is open to the issuing of equity shares, Global Depositary Receipts (GDRs), debt securities, as well as derivatives that must comply with EU minimum requirements. As a reminder, the overall compliance burden is lighter for companies with a Standard listing. Furthermore, a Standard listing helps companies from emerging markets attract investments from London’s large pool of available capital.

Other Segments

Last but not least, the High Growth Segment, as well as the Specialist Fund Segment, are explicitly designed for high-growth, revenue-generating businesses, as well as highly specialized investment entities that target institutional investors or professionally advised investors accordingly.

One crucial fact: The High Growth Segment is for companies that aren’t eligible for a Premium or Standard listing; however, they seek funding to grow their companies.