The history of the stock market in the UK

Vocabulary

• Stock market(Equity market) is the organized trading of stocks. It includes the stock exchange and the over-the-counter market.

• Jobbers acted as market makers.

• Brokers acted only as mediators between buyers and sellers.

Origins

The Royal Exchange opened in 1571Founded by Sir Thomas Gresham

The first regular list of stock and commodity prices was printed in 1689 : « the Course of the Exchange and Other Things » .

The New Jonathan's

• In 1773, the new Stock Exchange was built.

• In 1801, it was transformed into « the Stock Subscription Room », the regulated exchange.

• In the second half of 19th century, began the revolution of stock trading thanks to the inventions of telegraph, telephone and ticker tape.

The Big Bang in 1986Some key changes :

• All firms become broker/dealers able to operate in a dual capacity.

• Minimum scales of commission are abolished.

• Trading moves from being conducted face-to-face on a market floor to being performed via computer and telephone from separate dealing rooms.

• The Exchange becomes a private limited company under the Companies Act 1985.

Other milestones• The launch of alternative

investment market (AIM) for growth companies in 1995

• SETS (Stock Exchange Electronic Trading Service) was set up in 1997.

• In 2007, The London Stock Exchange merges with Borsa Italiana, creating LSEG.

Conclusion

Source : World Federation of Exchanges 31 December 2012

Source• LSEG’s yearbook 2012

• Monthly reports, World Federation of Exchange

• http://www.londonstockexchange.com

• http://thefinanser.co.uk/fsclub/2011/12/how-the-city-developed-part-eight-the-london-stock-exchange.htm

• http://www.investorwords.com/