Kavan Choksi Shares A Brief Insight Into The History Of The London Stock Exchange
het the eare Kavan Choksi, The London Stock Exchange or LSE is known to be the primary stock exchange in the United Kingdom. It also is the largest stock exchange in the country.
Kavan Choksi mentions that the LSE originated more than three hundred years ago, as the regional exchanges were merged in 1973 to form the Stock Exchange of Great Britain and Ireland. It was later renamed the London Stock Exchange. Choksi has an in-depth experience in the domain of finance and business and hence is quite knowledgeable about the popular stock exchanges of the world. The Financial Times Stock Exchange (FTSE) 100 Share Index is the dominant index in the UK and contains 100 of the top blue-chip stocks on the LSE.
Kavan Choksi offers a general overview of the London Stock Exchange
London has been one of the leading financial cities in the world for a long time. It is also renowned for being a hub for insurance, banking, and international trade. The history of the London Stock Exchange (LSE) goes way back to 1698 when brokers started to post prices of stocks and commodities at a popular meeting place for businessmen to conduct trades. By 1801 it become quite clear that a formal system was required in stock trading in order to deter unscrupulous traders and fraud. Hence, brokers agreed to a set of rules and paid a membership fee to get added to the stock exchange. This paved the way for the first regulated stock exchange in London.
What are the benefits of choosing LSE
LSE provides budget-friendly access to some of the deepest and most liquid pools of capital in the world through its primary markets. It is home to a large number of companies and offers electronic equities trading for the listed businesses. LSE has thousands of companies from more than sixty nations and therefore is considered to be the most international of all stock exchanges. It is the premier source of equity-market liquidity, market data, and benchmark prices in Europe. LSE is linked to partnerships in international exchanges in Asia and Africa and intends to remove cost and regulatory barriers from capital markets across the world.
The government of the United Kingdom deregulated the London stock market on Oct. 27, 1986. This was known as the “Big Bang”, owing to the massive changes that immediately ensured, deregulation introduced electronic trading to LSE, which replaced the traditional open outcry trading. The new system was faster and more efficient. It allowed trading volumes to go up and enabled LSE to rival other global exchanges successfully, including the New York Stock Exchange (NYSE).
The Big Bang was a part of the reform program of the UK government to eliminate overregulation, as well as encourage free market competition. It led to the introduction of many major changes to the structure of the financial markets. Kavan Choksi mentions that these changes included the elimination of minimum fixed commissions on trades, as well as the removal of the separation between companies that traded stocks and the ones that advised investors. These changes increased the competition among brokerage companies and gave rise to a series of acquisitions and mergers.
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