London Stock Exchange

From Free net encyclopedia

(Difference between revisions)

Revision as of 21:25, 18 April 2006
N328KF (Talk | contribs)

Next diff →

Current revision

Image:LSE PATERNOSTER THESOURCE-GREYWORLD.JPG Image:Paternoster Square.jpg Image:LSE 1.jpg The London Stock Exchange (Template:Lse) is a stock exchange located in London. Founded in 1801, it is one of the largest stock exchanges in the world, with many overseas listings as well as UK companies. It traces its history to 1697 when John Castaing, stationed at an office in Jonathan's Coffee-House, published the prices of stocks and commodities called The Course of the Exchange and other things.

The former Stock Exchange Tower, based in Threadneedle Street/Old Broad Street was opened by Queen Elizabeth II in 1972 and housed the Trading Floor where traders would traditionally meet to conduct business. This became largely redundant with the advent of the Big Bang on 27 October 1986, which deregulated many of the Stock Exchange's activities. It eliminated fixed commissions on security trades and allowed securities firms to act as brokers and dealers. It also enabled an increased use of computerised systems that allowed dealing rooms to take precedence over face to face trading.

In July 2004 the London Stock Exchange moved from Threadneedle Street to Paternoster Square (EC4) close to St Paul's Cathedral, still within the "Square Mile" (the City of London). It was officially opened by Queen Elizabeth II once again, accompanied by The Duke of Edinburgh, on 27 July 2004. The new building contains a specially commissioned dynamic sculpture called "The Source", by artists Greyworld.

In December of 2005, the LSE rejected a £1.5 billion takeover offer from Macquarie Bank. The LSE described the offer as "derisory." It then received a bid in March of 2006 for £2.4 billion from NASDAQ, which was also rejected by the LSE. NASDAQ was said to be preparing a hostile takeover bid in response, and the New York Stock Exchange (NYSE) was considered a potential white knight bidder.<ref name="observer_nasdaq_bid_20060312">"Nasdaq may go hostile as LSE encourages fresh bidding war." Walsh, C., The Observer. March 12, 2006.</ref> Interest from NASDAQ and the NYSE would likely have been taken more seriously, due to significantly higher financial clout, as well as being more attractive in creating the first transatlantic equities market. NASDAQ later pulled its bid, and less than two weeks later on April 11, 2006, struck a deal with LSE's largest shareholder, Ameriprise Financial's Threadneedle Asset Management unit, to acquire all of that firm's stake, consisting of 35.4 million shares, at £11.75 per share.<ref name="wsj_20060411_nasdaq_stake">"Nasdaq Acquires 15% of LSE." Patrick, M., Lucchetti, A., Reilly, D., Taylor, E. The Wall Street Journal. April 11, 2006.</ref> NASDAQ also purchased 2.69 million additional shares, resulting in a total stake of 15%. While the seller of those shares was undisclosed, it occurred simultaneously with a sale by Scottish Widows of 2.69 million shares.<ref name="forbes_nasdaq_sw_20060412">"Scottish Widows says has sold 2.7 mln LSE shares at 1,175 pence." Forbes. April 12, 2006.</ref> The move was seen as an effort to force LSE to negotiate either a partnership or eventual merger, as well as to block other suitors, such as NYSE.<ref name="bbg_nasdaq_stake">"Nasdaq Buys 15 Percent Stake in LSE for $782 Million." Ortega, E. Bloomberg News. April 11, 2006.</ref>

1 Structure
2 Levels
3 See also
4 External links
5 References

[edit]

Structure

The LSE is broken down into the Main Market and Alternative Investments Market (AIM), as well as EDX London (which handles derivatives). The independent FTSE Group maintains a series of indices for measuring the LSE, including the FTSE 100 Index, FTSE 250 Index, and FTSE 350 Index.

[edit]