1. PRESENTATION ON
Presented By:
NEHA DIXIT
098
AYUSH SIDDHARTHA
072
PAVAN MISHRA
067
MANINDER SINGH
069

2. INTRODUCTION TO STOCK EXCHANGE

A stock exchange serves the purpose of a platform of an organized and regulated
market where investors and issuers can indulge in the activity of buying and selling
various securities like shares, debentures, government securities, commodities,
currency, etc.


2
22 stock exchanges in India including national and regional exchanges.
In a country of 1.2 billion, there are only about 20 million demat accounts.

3. TYPES OF FINANCIAL MARKETS
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4. INTRODUCTION TO LONDON STOCK EXCHANGE
GROUP
•
A British-based stock exchange and financial information company.
•
It owns the Borsa Italiana (Italy’s main stock exchange) and London Stock
Exchange (LSE).
Borsa Italiana in Milan, Italy.
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5. INTRODUCTION TO LSE

Located in the City of London, United Kingdom and founded in 1801.

London Stock Exchange is the fourth largest exchange in the world after New York
Stock Exchange, NASDAQ (National Association of Securities Dealers Automated
Quotations) and Tokyo Stock Exchange.


211 years old exchange.

Number of Companies - 2,447 as on 31st July, 2013.

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It is the largest exchange in Europe with a market capitalization of US$ 3.3 trillion.
Website -
www.londonstockexchange.com

6. KEY PEOPLE
Mr. Christopher S. Gibson-Smith
(Chairman)
Mr. Xavier Rolet (CEO)
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7. TRADE OPERATING TIMINGS


Opening Auction 07:50 - 08:00

Continuous Trading 08:00 - 16:20

Closing Auction 16:30 - 16:35

Order Maintenance 16:35 - 17:00

Trade Reporting Only 17:00 - 17:15
o
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Trade Reporting 07:15 - 07:50
Holidays are currently: New Year's Day, Easter, May Bank Holiday, Spring
Bank Holiday, Summer Bank Holiday, and Christmas Day. UK Time is
Greenwich Mean Time (GMT).

8. HISTORICAL BACKGROUND
 1698: John Casting begins to issue 'at this Office in Jonathan’s Coffee-house'
a list of stock and commodity prices called 'The Course of the Exchange and
other things.
 Later on the Stock dealers are expelled from the Royal Exchange for
rowdiness and start to operate in the streets and coffee houses.
 1761: A group of 150 stock brokers and jobbers form a club at Jonathan's to
buy and sell shares.
 1773: The brokers erect their own building in Sweeting’s Alley, with a
dealing room on the ground floor and a coffee room above and it was named
as the 'The Stock Exchange'.
 1801: Officially, London Stock Exchange history starts here!
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9. Continued….
•
As the financial centre of the world, both the City and the Stock Exchange
were hit hard by the outbreak of the First World War in 1914.
•
The Stock Exchange ended up being closed from the end of July until the New
Year, introducing again street business as well as on the “challenge system”.
•
The Exchange was set to open again on 4 January 1915 under tedious
restrictions, as transactions were to be in cash only.
•
FTSE 100 Index (Footsie 100) was launched by the Financial Times and Stock
Exchange partnership in February 1984.
The Stock Exchange Tower pictured from atop the
National Westminster Tower in 1983.
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10. ROUTES TO
THE LONDON MARKET
The London Stock Exchange offers international companies a number of routes to enter
the market:


In terms of smaller SME’s the Stock Exchange operates the Alternative Investment
Market (AIM).

Professional Securities Market

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For the biggest companies exists the Premium Listed Main Market.
Specialist Fund Market

11. ROUTES TO
THE LONDON MARKET (CONTINUED…)

Secondary Markets:

Ordinary Shares
Exchange-traded funds
Exchange Traded Commodities
Covered Warrants
Structured Products
Bonds
Retail Bonds
Global Depositary Receipts (GDRs)







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12. FINANCIAL SERVICES AUTHORITY
o
o
Its board was appointed by the HM Treasury.
o
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A quasi-judicial body responsible for the regulation of the financial services industry in
the United Kingdom.
When acting as the competent authority for listing of shares on a stock exchange, it is
referred to as the UK Listing Authority (UKLA), and maintains the Official list.

13. STATUTORY OBJECTIVES
•
•
Public Awareness
•
Consumer Protection
•
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Market Confidence
Reduction of Crime

14. REGULATORY PRINCIPLES


Role of management

Proportionality

Innovation

International character

14
Efficiency and economy
Competition

15. ACTIVITIES REGULATED BY FSA
• Accepting
deposits
•
Effecting or carrying out contracts of insurance as principal
•
Dealing in investments (as principal or agent)
• Arranging
•
deals in investments
Managing investments
• Assisting
in the administration and performance of a contract of insurance
•
•
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Safeguarding and administering investments
Sending dematerialized instructions

16. KEY STATISTICS of LSE
DAILY TRADING IN LAST 5 DAYS

Date
Shares
Turnover (£)
Trades
Traded Stocks
27/Sep/2013 19:45
936,039,206
3,724,524,342
540,954
1,372
26/Sep/2013 19:45
927,839,841
3,479,520,911
496,744
1,300
25/Sep/2013 19:45
1,059,729,976
4,262,340,835
588,389
1,357
24/Sep/2013 19:45
1,034,914,645
3,936,337,061
565,865
1,430
23/Sep/2013 19:45
923,249,700
3,497,841,306
525,648
1,438


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The LSE's current trading platform is its own Linux-based edition named "Millennium
Exchange”.
The trades conducted on the LSE are cleared on LCH.Clearnet, which is mutually owned
by some banks, Euronext as well as the London Metal Exchange.

17. MAJOR INDICES


FTSE 250

FTSE 350

FTSE All-Share

FTSE AIM UK 50

FTSE AIM 100

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FTSE 100
FTSE AIM All-Share

18. FTSE 100 INDEX

Foundation-
1984

Operator-
FTSE Group ( a subsidiary of LSE Group)

Exchanges-
London Stock Exchange

Constituents-
100

Type-
Large cap

Market cap-
£1,549 billion (as at 30 April 2012)

FTSE 100 companies represent about 81% of the entire market capitalization
of the London Stock Exchange.

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It is calculated in real time and published every 15 seconds.

19. FTSE 250 INDEX


This Index is calculated in real-time and published every minute.

A number of companies within this index are investment trusts.

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A capitalization-weighted index consisting of the 101st to the 350th largest
companies on the London Stock Exchange.
As of 30 September 2008, the net market capitalization of FTSE 250 Index
was £161 billion (or 13 per cent of FTSE 100 Index).

20. LSE JOINT VENTURES


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London Stock Exchange Group (LSEG) and India’s National Stock
Exchange (NSE) today signed a Letter of Intent to evaluate joint strategic
business opportunities, and to co-operate together more closely in the future.
As part of the Letter, both exchanges declared their intent to explore the
feasibility of an agreement whereby FTSE Group may licence the FTSE 100
Index to the NSE, and whereby the NSE may licence the S&P CNX Nifty
(Nifty 50) to LSEG for the purpose of issuing and trading options and other
index contracts.

21. Continued…
•
•
21
In July 2008 the London Stock Exchange (LSE) and the TSE announced a
new joint venture Tokyo-based market, which will be based on the LSE's
Alternative Investment Market (AIM).
In July 2012, the LSE bought a 5% stake in Delhi Stock Exchange.

22. LONDON STOCK MARKET TREND
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