One of the oldest and rightfully largest stock markets in Europe is the London Stock Exchange. The trading platform is located in the capital of Great Britain, London, and currently includes about 4 thousand shares in the listing, which provides a capitalization of over 6 trillion dollars. In addition, about 1,000 shares of companies located in 46 developed and developing countries are represented on the London Stock Exchange. This is why the LSE is extremely popular among traders and investors around the world.

• It has a high capitalization, being in third position according to this criterion in the global chart (after NYSE And NASDQ);
• is international, providing access to shares of foreign companies;
• includes an extensive list of listed companies;
• has independence from American and European stock markets.

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History of the London Stock Exchange

The history of the London Stock Exchange dates back to 1571, although the official date of birth of the LSE is considered to be 1801. In 1571, the British royal financier Thomas Gresham obtained permission from the queen to build an exchange platform, which, in his opinion, must be present for the development of trade affairs and relations. Initially, the financial consultant planned to unite sheep wool dealers and merchants, but later sellers of a wide variety of goods appeared on the exchange platform. It is noteworthy that the initiator did not ask for a penny from the British Queen and built the exchange entirely with his own funds. Of course, Gresham was not the discoverer of the exchange or even the founder of the first stock exchange in England, since at that time there was already an exchange on Hofstraat in Antwerp, where sailors and diamond miners, cutters, etc. gathered.

countries are listed

place in the world by capitalization

for years the exchange was located in nearby coffee shops

For a long period, only brokers of the commodity section were located on the exchange floor, and only in 1695 did state and corporate securities begin to appear in circulation.

Only representatives of the court retinue and nobility had access to the Gresham exchange platform, and ordinary merchants and resellers were not able to trade on this exchange. Then rootless traders began to gather in a coffee shop not far from the exchange floor to make deals for the sale of salt, gunpowder, tulip bulbs, matches and other popular goods at that time. A similar story happened with the organization of the NYSE exchange in New York. British businessmen gathered at Jonathans Coffee House.

In 1697, the British government decided to limit the number of traders on the stock exchange to one hundred people and introduce significant fines for traders operating without the necessary licenses. Naturally, this led to a drop in trading on the official exchange, since most of the brokers relocated to the Exchange Alley. Gradually, more and more places like coffee shops and alleys began to appear, and more and more merchants and representatives of industry and production began to gather on open unregulated exchange platforms than on the official exchange platform. In 1773, another stock exchange was established on Sweeting Alley and, despite the prohibitions of the kingdom, traders built a building for the exchange in 1801. It is this date, or more precisely March 3, 1801, that is considered the beginning of the functioning of the London Stock Exchange, because it was this building that became its home.

Also in 1801, official registration of all brokers was introduced and the primary set of rules for trading on the stock exchange was published, making the London Stock Exchange one of the first localized regulated markets in Europe. Now control was established on the exchange and only registered participants could carry out transactions, and not, as before, everyone who paid the membership fee. By 1812, the official regulations of the exchange were prepared, which spelled out in detail all the previously established rules, obligations and guarantees of the parties to participants in exchange transactions. Private representatives could only carry out transactions exclusively through brokerage agents.

The subsequent years of the nineteenth century were the era of the first ascension for the London Stock Exchange, since this time also saw the rapid development of steel, railway, mining and oil refining companies, as well as conglomerates in the construction, financial and insurance sectors. Accordingly, all these companies went to the stock exchange to sell shares and generate additional profits. Such excitement required the corresponding development of the exchange in technical terms, which cost considerable costs. But the management successfully coped with this task, modern telegraphs were installed, communication with stock exchanges in the USA and Europe was established, and the number of trading places was increased. At the beginning of the 1900s, the London Stock Exchange became one of the most popular and popular in Europe, with more than 3 thousand companies listed on the platform.

However, the period of growth quickly gave way to a period of decline due to the outbreak of the First World War in Europe. Since the summer of 1914, the London Stock Exchange was closed for almost six months, and at the beginning of 1915, in order to limit possible losses, the organizers of the LSE introduced an impressive set of restrictive measures for all participants in exchange transactions. This course of events, combined with the general depressing state of affairs in Europe due to the war, led to a strong outflow of participants and, accordingly, capital on the LSE exchange. According to analytical calculations, it was at this moment in its history that the London Stock Exchange lost its weight as the most influential figure in the World Stock Market.

The outbreak of World War II in Europe also affected the activities of the LSE - trading was suspended from September 1 to September 7, 1939. In the post-war years, the organizers of the LSE began a program of actively increasing the volume and development of the site, which was implemented by the mid-60s. From this period, LSE began active promotion again and by 1972 another building with an area of ​​2.1 thousand square meters was built, which was called the Exchange Tower. Also this year, they were able to implement automation of exchange processes, and in 1973 the LSE joined 11 exchanges located in Scotland and Ireland.

27 October 1986 is designated in LSE history as Big Bang or Explosive Monday. On this day, the London Stock Exchange significantly changed the trading conditions for broker-dealers and brokers, revised the procedure for commission fees, and also implemented the transition to electronic trading to replace voice trading.

Europe. It is located on Paternoster Square near St Paul's Cathedral in the City of London.

Currently, the London Stock Exchange (LSE) is part of the London Stock Exchange Group. Shares of companies from 60 countries are traded on the LSE.

The clear and reasonable rules of the game, formed over many years, make the London Stock Exchange an international market for corporate finance, where both investors and enterprises are equally comfortable working.

Currently, the London Stock Exchange ranks third in the world in terms of capitalization. This is the most multinational exchange in the world. It carries out the largest number of transactions with shares of foreign issuers. In total, about 3,000 securities rotate.

The London Stock Exchange is one of the world's most famous securities markets. In the mid-twentieth century, an information system was created on it, with the help of which trading results for the 700 most popular securities were displayed, and brokers could see television broadcasts of exchange trading on specialized monitors. Today, transactions on the LSE are managed both by telephone and via the Internet.

HISTORY OF THE LONDON STOCK EXCHANGE

The LSE was officially founded in 1801, but its history actually began in 1565, when the royal financial agent and advisor Thomas Gresham built the Royal Exchange with his own money. For a long time, the exchange was exclusively a commodity exchange, and only in 1695 transactions with securities began to be carried out here. However, securities brokers were soon banned from entering the Royal Exchange due to “inappropriate behavior” and they moved to nearby coffee shops, where the stock market developed for about 100 years.

In 1760, 150 London brokers gathered in Jonathan's coffee shop and formed their own professional club. In 1773, they rented a special room for their meetings. This year is usually considered the year of birth of the London Stock Exchange.

On March 3, 1801, the stock market was reorganized: now only registered brokers could be trading participants, and not just those who paid the daily fee.

In 1812, the first set of rules of the exchange was issued, regulating the main issues of work here. Overall, the 19th century saw the growth and strengthening of the London Stock Exchange.
In 1854, the exchange moved to a new, more spacious building.
In 1878, the first telephone appeared on the London Stock Exchange.
By the late 1800s, the teletype and telegraph were also invented, and new technologies led to a revolution in the operation of the stock exchange.

By 1901, more than 3 thousand shares of various companies were traded on the London Stock Exchange. However, the First World War made its own adjustments to its development. It was during this period that London lost its role as a leading intermediary in the global stock market.

In 1923, the exchange received its own coat of arms with the motto "Dictum Meum Pactum", "My World in My Bond".

To restore LSE's position after the Second World War, a development program was developed, which was only implemented in the mid-1960s.

In 1972, construction of the Exchange Tower was completed and automation of exchange trading began. On October 27, 1986, the most radical changes called the “Big Bang” were implemented.

In 1991, the exchange began to bear the trading name “London Stock Exchange” for the first time.

In 2007, the London Stock Exchange merged with Borsa Italiana, creating the London Stock Exchange Group (LSEG). The group operates from its stock exchange headquarters in Paternoster Square.

Main functions of the London Stock Exchange

LSE activities are carried out in several main areas:
1. Organization and regulation of the central securities market in the UK.
2. Organization and regulation of the international stock market on the LSE.
3. Determination of the UK listing mechanism.
4. Determination of FTSE stock indices in collaboration with the Financial Times newspaper.
5. Creating opportunities to attract capital.

Conditions for receiving a quote

The share market on the London Stock Exchange is divided into two groups. The first group is companies that meet the requirements of the FSA (Financial Services Authority in the UK). The second group consists of companies belonging to the alternative investment market. As a rule, these are companies that do not enter the main exchange market, as well as those that require additional investments in the process of growth and expansion.

To obtain a quotation or listing on the London Stock Exchange, a company must disclose commercial, financial and management information. In addition, the firm's market capitalization must be at least £700,000 and the shares issued by the firm must be publicly traded. Also, 25% of all shares of the company must belong to those shareholders who are not directors of this company. No shareholder of a firm can have more than 30% of the votes.

Tools of the trade

Securities for trading on the London Stock Exchange:
Ordinary shares.
Exchange-traded funds.
Exchange commodities.
Warrants.
Structured products - Bonds.
Retail bonds.
Global depositary receipts.

Members of the London Stock Exchange

If we talk about LSE participants, then this is a huge number of companies from different countries of the world. The stock exchange trades shares (usually in the form of depository receipts) of a number of well-known Russian companies, including Rosneft, Lukoil, Cherkizovo, Evraz, Sberbank - one of the largest banks in Russia, leading successful activities in many years in a row, Tatneft is a large company engaged in oil production in Russia and other countries, VTB is another of the largest banks, confidently claiming the status of a Russian “blue chip”, etc. In 2005, futures and options on the RTS index (trading volumes on these contracts are 3 billion rubles and 700 million rubles per day, respectively).

The FTSE 100 stock index is calculated based on the share prices of the 100 largest capitalized listed companies. It is the main stock index of the London Stock Exchange, as well as a barometer of the success of the UK economy.

London Stock Exchange Statistics

Currently, about 3,000 companies from more than 60 countries are listed on the exchange. The total market value of these companies is 3.9 trillion. pounds. The daily trading turnover in July 2011 was 4.4 billion pounds sterling (5.0 billion euros) and the daily number of transactions was 611,941. The LSE's share of trading in the UK trading portfolio was 62.2%.

Equity trading volume in 2012 was $2.2 trillion, down 22.7% from 2011. At the same time, the volume of bond trading amounted to $4.57 trillion. For comparison: the trading volume on the MICEX stock market in 2012 amounted to 24.1 trillion. rubles ($0.7 trillion), which is 21% lower than in 2011.

The secondary market for shares in the UK is represented practically by the London Stock Exchange. The LSE is one of the world's three leading share trading exchanges and a leader in trading shares of foreign issuers. It accounts for approximately 50% of the foreign exchange turnover of shares of national issuers.

The London Stock Exchange itself is a joint stock company, whose shares are traded on it. According to the World Federation of Exchanges (WFE), at the end of 2012, LSE took 4th place in the world in terms of capitalization, reaching a value of $3.4 trillion, which is 4% higher than in 2011. In the first half of 2013, the exchange's capitalization increased to $3.6 trillion, which is almost 9% higher than the same results in the first half of 2012.

CONDUCTING EXCHANGE TRADING

Business activity on the London Stock Exchange is divided into different markets. Each market has its own place on the trading floor of the exchange. There are two types of intermediaries working on the trading platform - brokers, who work with funds received from investors, and jobbers, who make transactions with securities at their own expense.

There are very strict rules for LSE employees, for example, the transition of a broker to jobbers can only be done with notification, which must be submitted to the administration of the trading platform at least a month in advance. In addition, brokers cannot simultaneously work as jobbers.

The broker, having received an order from his client to buy or sell securities, goes to the part of the room where the corresponding market is located. There are many jobbers working there who compete with each other by trading certain stocks. There is no standard transaction size other than those generally accepted in the market as a whole. The broker, depending on the content of the order, purchases securities from the jobber or sells them to him. The order cannot be executed until the limit price specified by the client, LIMIT, is reached. Upon execution of the order, the broker notifies the client, informing him of the amount due and the payment date.

In 1997, the London Stock Exchange introduced a new automated trading system, SETS. Experts dubbed this event the “second great shake-up.” As part of the new system, the LSE began to use both the quote entry system (SEAQ) and the order entry system (SETS), as well as their variations.

In order for a security to be traded on the SEAQ system, it must have at least two market makers. Market makers are members of the exchange who are obliged to provide quotes for securities throughout the working day (from 8:00 to 16:30), making their purchase and sale in the amount prescribed by the exchange and established for each specific share depending on the turnover for last 12 months. In addition, there are a number of rules that they must follow.

Market makers enter their quotes, which are displayed on the displays of system users. This information is available to all users of the system, but only they have access to the SEAQ Main System, which allows them to enter quotes.

Within the framework of SEAQ, the SEAQ International system operates, reflecting stock quotes of foreign issuers included in the Official List of the London Stock Exchange. Its peculiarity is that quotes are given by market makers in the corresponding national currency.

In addition, users have access to information about the latest transactions concluded on the exchange, the so-called ticker. The ticker is an electronic 100-page magazine. The information displayed on the screen constantly changes as transactions are completed. The first page includes data on the most recent transactions: price and number of shares sold.

After reviewing the quotes of a particular security, a system subscriber can make a transaction by contacting the market maker offering the best conditions by telephone or other means. At the same time, according to the rules of the London Stock Exchange, securities transactions in the SEAQ system made during official quotation hours (8:30 - 16:30) must be registered within three minutes after their completion. Transactions made outside business hours must be registered from 7:15 to 8:00 am the next day with a special mark (0-00 time stamp). Registration is carried out by the stock exchange upon notification from one of the participants in the transaction - directly through the SEAQ terminal, by telephone, telex, etc. The exchange also established which of the participants in the transaction is required to provide information.

Some transactions are carried out automatically using the SAEF (SEAQ Automated Execution Facility) system. These are the most liquid shares, and the size of the application should not exceed 10% of NMS. Special terminals are used to transfer applications. The order is executed automatically at the best price. Registration is also automatic.

On the London Stock Exchange, settlements are not made daily, but on so-called settlement days. One of these days occurs in the middle of the month, the second at the end. All operations on transactions concluded in the previous period must be completed on the next settlement day.

Attempts to buy the exchange

Over the past few years, the world's largest financial institutions have been actively trying to buy the London Stock Exchange. Shareholders of the Frankfurt stock exchange Deutsche Borse were the first to shock the business world of Europe by declaring their intention to acquire the London site. At the end of 2004, this proposal caused quite a stir in business circles, but the deal did not materialize.

In December 2005, the Australian bank MacQuery offered £1.5 billion for the LSE, but the exchange's management decided that they were simply being bullied.

More serious proposals, and with them an intensified struggle, began in 2006. The American NASDAQ, the most serious player, joined the process, declaring that it would buy the stock exchange at any cost. The offer made to the British had already reached 2.4 billion pounds sterling, but the LSE remained adamant.

So far, all these passions around the London Stock Exchange only work to its advantage: in two years, due to constant speculation about an upcoming takeover, its own securities have more than tripled in price. The LSE is now the key to financial Europe, and has not yet become the property of the world's financial giants.

Greetings! For our compatriots, the securities market is a terrible beast. Allegedly, it is risky to invest money here, it is better for a deposit or even under a mattress. At the same time, in Europe, the best birthday gift is considered to be a package of shares and no one is afraid of the stock markets.

My regular readers have long said goodbye to myths about stocks and investments. Today I will tell you why the LSE (London stock exchange) is so popular, and you, too, will give up your prejudices in the field of the stock market.

History of the exchange

The London stock exchange LSE is in the TOP 3 largest exchanges in the world.

Of course, LSE has a rich history, dating back to the 17th century. But not at the court of the English queen, but in a dirty coffee shop, lit by a tallow candle.

The first London brokers gathered in these coffee shops. They were not allowed to trade on the Royal Exchange because these traders were from the common people. They had no choice but to stand on a stool in a coffee shop and announce stock prices from there.

Brokers announced prices for coal, coffee and paper. Thus, the London Goods Market appeared. The traders quickly gained listeners. Coffee brokers enjoyed their glory for another 124 years.

Finally, the great fire of London destroyed the Royal Exchange, and in its place was erected what is today called the LSE Exchange.

Despite dozens of takeover attempts, the London Stock Exchange is still owned by the London Stock Exchange Group.

Markets PLM AIM SFM PSM

The main task of the London Stock Exchange is to redistribute the assets of companies among investors. If small companies trade with big ones in one place, there will be a commotion. Therefore, within the LSE there are 4 markets for companies with different capitalizations.

Business sharks live in the premium stock market, which is called PLM, or Premium Listing Market. Smaller companies are located on other LSE platforms:

In addition to these markets, the London Stock Exchange has secondary platforms for trading various securities: ETFs, bonds, options, and so on.

How to list on the stock exchange

Listing on the London Stock Exchange is handled by two independent organizations:

• UKLA (UK Listing Authority);
• FCA (government financial regulator).

Only with their approval the company is listed on the national stock exchange LSE.

Due to bureaucracy, the company enters the market only after six months. Stable trading of securities on the London Stock Exchange begins in 1-3 years.

Pros and cons of the London Stock Exchange

The undoubted advantage of the London Stock Exchange is its internationality. About half of international share transactions take place on the LSE. Thanks to this, the Footsie Index reflects the overall European economic situation, and not just the British one.

Investors love the LSE for its wide choice: there is a market for ordinary companies and for innovative ones; for ordinary shares and for bonds and so on.

An international investor will find no fault with the London Stock Exchange. But a Russian investor will find the difficulties he will encounter unfair when trying to trade on the LSE.

The most famous stocks traded here

Shares of several Russian companies are traded on the London LSE. Among them are those that are on everyone's lips - Rosneft and Lukoil.

Among foreign issuers, everyone is familiar with the brands Coca-Cola, Durex and Bentley. But familiar brands are mostly subsidiaries of large holdings. And it is holdings that are listed on the LSE. Therefore, the list of participants on the London Stock Exchange will not tell the average person anything: there will be no familiar names there.

How to access stock trading

Trade through the LSE, using the services of our and foreign brokers. I would recommend foreign brokers because they provide insurance for your funds.

There are more than four thousand securities on the London market. I don’t recommend buying just one, and here I described the reason. In short, it is better to put your money into different “baskets”, that is, buy securities from different issuers.

To choose stocks to buy, read about an investment portfolio here, or consider buying ETFs. When you decide on the securities, you will need to choose a broker for trading on the stock market.

1. Exante.
2. Saxobank.
3. CapTrader.

Choosing a foreign company will give you the freedom to buy any shares on the LSE.

Interactive Brokers CapTrader Exante Just2Trade

In fact, the only real major American broker who still works with Russians.

1. There is support in Russian
2. Good commissions
3. The deposit can be replenished with rubles (bypassing currency control)

The disadvantages include:

• Minimum deposit $10,000
• Inactivity fee

The company is an American subsidiary of Finam and was created to bring clients from the CIS to the American market.

1. The easiest way to open an account
2. Russian-language support
3. Opening an account from $200

• Quite high commissions
• Various additional payments

Among Russian companies there are few that I trust:

1. Finam.
2. Keith Finance.
3. Opening.

To directly enter the London LSE, you need to enter into an agreement with one of their subsidiaries in Europe. The minimum deposit is usually from $200.

But you have to be careful with any broker. The company may fine you for account inactivity or have other hidden fees. But don’t worry: a specialist from the company will advise you on all issues of the stock market and London trading!

Rick Keith Otkritie Finam BKS Tinkoff Promsvyaz

The largest broker and investment company in Russia. I haven’t worked with them myself, but my colleagues respond very positively.

Pros:

1. Non-buggy Transaq terminal
2. Possibility of replenishing/withdrawing money from the account without commission (through your bank)
3. A bunch of first-class services (for example, you can download quote history for free)
4. Possibility of opening an account in foreign jurisdictions.

The disadvantages include the intrusiveness of the sellers.

Caution about BO and Forex

All my readers have at least once encountered binary options or the Forex market. I'm very glad if this encounter was painless.

These ways of making money don't work. Binary options are a financial instrument for serious investors who trade on the Chicago Stock Exchange. These securities are not available for trading in the form in which they are advertised.

The Forex market is a casino and has nothing to do with the stock market in general, or the London market in particular. People place bets here and often lose to smithereens.

But scammers know how to beautifully package these scams under the guise of a tool for making money on the stock market. The most persistent ones even call potential victims by phone. If you receive such a call, do not believe the talker on the other end of the line. Likewise, ignore advertisements with a sea of ​​green bills.

I have a reason to speak so categorically about Forex and options. Do you want to know more - read my articles on this topic.

Exchange indices

Nasdaq is a New York stock exchange, one of the largest in the world. The exchange tried for a long time to enter the European market, but in 2007 it succeeded. Now you can buy American shares on the English LSE.

One of the most popular Nasdaq indices is called the NASDAQ-100 and includes the blue chips of the US market. They do not include banks or insurance companies, so an index-based portfolio is relatively immune to political and economic turmoil.

On the LSE stock exchange, shares of all companies from the Nasdaq TOP 100 are purchased. In addition, there are ETFs based on this index. I wrote about what ETF funds are and how to trade them here.

FTSE 250, SMALL, ALL, FTSE Russia

The English LSE has developed 250 thousand stock indices from the Footsie family. Each of them has a narrow specificity, with the exception of single products.

The FTSE 250 is considered a barometer of the British economy, not the European one. This is because companies from the TOP 250 are focused on the national currency. All other indices in the family, on the contrary, tell about the European economy and depend on the dollar.

The FTSE SMALL includes companies whose capitalization is inferior to the TOP-250. These include startups and innovative projects.

Both these smaller brands and the blue chips are included in the larger FTSE All-Share index. The index contains all companies that are registered on the London LSE.

In addition to national products, LSE has developed foreign indicators. These include FTSE Russia. It included 15 largest companies from Russia that trade with foreigners on the London market through depository receipts.

Prospects for investing in these indices

The UK is currently experiencing a manufacturing downturn. Even the commodity market of Foggy Albion is in crisis. But England remains a major player on the international stage. If you invest in the stock market today, tomorrow the LSE will definitely show predictable growth and bring income to investors.

1. The London Stock Exchange was built with his own money by one man, a financial agent at the queen's court. His name is Thomas Gresham.
2. During the First World War, the stock market returned underground for the first time since the 17th century because the LSE suspended operations.
3. During the Second World War, the London LSE worked even during the bombings: from the basement and by telephone.
4. In the 1970s, the stock exchange merged with 11 other markets, including the Scottish one.
5. In 2011, the London Exchange building became the scene of a clash between protesters and police; The rally was held by young people dissatisfied with modern democracy.

How to get on the London Stock Exchange

London Stock Exchange LSE: trading mode, indices, reviews

Despite the protracted Brexit, London remains the largest financial center in Europe. In the local City, an important place is occupied by the stock exchange, which is well known to Russian companies, traders and banks. In this review, we will figure out what the London LSE is, what securities are traded on it, and how a Russian investor can get there.

What is the London Stock Exchange

I've been running this blog for over 6 years. All this time, I regularly publish reports on the results of my investments. Now the public investment portfolio is more than 1,000,000 rubles.

Especially for readers, I developed the Lazy Investor Course, in which I showed step by step how to put your personal finances in order and effectively invest your savings in dozens of assets. I recommend that every reader complete at least the first week of training (it's free).

The London Stock Exchange (LSE, London Stock Exchange) is the third largest market in the world by capitalization (about $6 trillion). Second only to its American competitors - and. In terms of volumes of bonds, options and futures contracts traded here, the LSE has no equal. Quotations for securities and commodity assets of the Old World are determined there.

The Netherlands is considered the birthplace of stock trading. In 1571, financier Thomas Gresham proposed to the British queen to establish a meeting place for merchants and bankers in London, similar to the stock exchange in Antwerp (now Belgium). The queen agreed, but only representatives of the nobility with a pedigree were allowed to bid. Regular traders were not licensed and were forced to meet at Jonathan's Coffee House. This is how the tradition of making deals in coffee houses arose in London, and later it was transferred to New York.

In 1801, independent traders organized their own exchange, from which the LSE traces its history. Transactions could only be carried out by registered participants, subject to strict rules. The exchange regulations stipulated the guarantees of the parties and the procedure for conducting transactions through brokers. Already at the beginning of the twentieth century, shares of three thousand companies were traded here - steel, railway, insurance, etc. Before the outbreak of the First World War (1914), the London Stock Exchange was the main trading platform on the planet. But due to hostilities and the decline of the European economy, leadership moved overseas and remains there to this day.

After the Second World War, London continued to hold the lead in terms of stock trading turnover in Europe. In 2007, LSE acquired a controlling stake in the Italian Borsa Italiana, and two years later, the international trading platform Turquoise. This brought the exchange to a new level of global expansion. As a result, the London Stock Exchange Group (LSEG) in its modern form was formed. But in 2011, it itself became the object of claims from the aggressively growing NASDAQ. Several attempts by Americans to enter the capital were rejected. As a result, Nasdaq sold the previously purchased stake in LSE (28.7%) to Dubai's Borse Dubai. At this point, the London Stock Exchange lost 1/5 of its capitalization, but retained its independence and role as a financial leader in Europe. In terms of ownership, it is a joint stock company with 400 member companies: banks, brokers, dealers, etc.

With its huge turnover, LSE operates in the relatively small UK market compared to the US. The exchange receives volumes by serving foreigners. This is the most international platform in the world. Securities and commodity contracts from 60 countries are quoted here. Foreign investors, traders and brokers are attracted here by stable legislation, an independent court, loyal and orderly trading conditions.

What is on the LSE for the Russian investor

Main trading on the exchange takes place from 8 am to 16.30 pm GMT. In Moscow it will be from 10.00 to 18.30. The main subject of trading are stocks, depositary receipts, bonds, futures and options. I will list the well-known brands presented here: Shell, BP, HSBC, BBC, Toyota, General Electric, Vodafone, CNN, BASF, Unilever, etc. The entire exchange listing can be downloaded in Excel: https://www.londonstockexchange.com/statistics/ companies-and-issuers/companies-and-issuers.htm (2111 companies as of April 2019). A separate file with companies from the Russian Federation is also available there.

Can search and filter from over 1,200 funds at: https://www.londonstockexchange.com/exchange/prices-and-markets/ETFs/ETFs.html.

Each traded instrument is equipped with interactive charts, quote history, technical indicators, and fundamental news. All this can be obtained by any site visitor, free of charge and without registration.

The exception is the portfolio creation service; to use it you need to log in. This is an online simulator that has 2 sections - for investors and for traders. In the first, you can create a portfolio for yourself and see its simulated profitability, risk level, etc. Thus, you can bypass the services of a broker and financial advisor (of course, if you have enough qualifications for competent portfolio management). In the second simulator there is an analogue of a demo account for trading operations. You can set up Email Alerts – notifications about events occurring with quotes.

The Stock Screener from Morningstar, one of the best providers of such services, deserves praise. The screener quickly detects a paper by name, ticker or code. By going into its description, the user receives comprehensive characteristics, graphs, etc. Link to the screener (works without registration): https://www.londonstockexchange.com/exchange/companies-and-advisors/companies/stock-screener.html.

There are four trading sections on the exchange, but the main ones are two:

• Premium Listed Main Market – the main market in which only large issuers are listed;
• Alternative Investment Market is an alternative platform for small capitalization companies. This is a kind of “sandbox” where issuers are traded that do not yet meet the main listing criteria. For example, here the required annual revenue is only £40 thousand.

There are two further separate sections for depositary receipts and debt instruments, as well as for institutional investors. But we are not interested in them because they are not available to ordinary clients.

The London Stock Exchange, together with the Financial Times and Frank Russell (acquired by the exchange in 2014), calculates and publishes the world's largest family of indices. The most famous and popular of them is. ( FinancialTimes Stock Exchange).

In business news it is often referred to in trading jargon as footsie hundred ( footsie). Its calculation includes the 100 largest listed companies, which account for up to 80% of the exchange's capitalization. Traditionally, it is considered a barometer not only of the British, but also of the European economy as a whole. Index ETFs and CFD contracts are issued for it, as a benchmark. To be included in the index, the issuer must not only pass the capitalization level, but also have at least 25% of shares in free float. These same requirements must be met to be included in the main listing. In addition, a number of conditions must be met:

1. The share of the main majority shareholder should not exceed 30%;
2. Stable profitability over the last 3 years;
3. The issuer is obliged to secure an agreement with a market maker who is ready to support the securities;
4. Pass the inspection of the British financial regulator FCA;
5. Publish open reporting on .

All indices that are formed on the LSE can be tracked on the exchange website (https://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/ftse-indices.html ), and on third-party services for investors.

To gain access to foreign assets on the LSE, as is the case with other large foreign exchanges, the average investor has 3 main options. Let's list some of their pros and cons in the form of a summary table:

Based on reviews on the Internet and from my own personal experience, it is worth considering as the best option. It has Russian support, maximum American insurance and reasonable commissions. Among the “foreigners” we can also name the German CapTrader (it represents the same IB in Europe), Saxobank, . All of them have a Russian website and support. But tariffs, the possibility of using a domestic bank card, and the package of documents must be clarified on the website of each broker.

Russian companies on the LSE

Historically, most securities of Russian issuers are quoted here. All of them are represented by depositary receipts ADR and GDR. These are mainly “blue chips”: EN+ GROUP PLC, JSC VTB BANK, PAO NOVATEK, PJSC LUKOIL, PJSC MAGNIT, PJSC MMC NORILSK NICKEL, PJSC PHOSAGRO, PJSC RUSHYDRO, SBERBANK OF RUSSIA, SISTEMA PJSFC, X5 RETAIL GROUP N.V, etc. Thus, in London the entire top of the Moscow Exchange has been duplicated with its foreign instruments. In fact, this is the main channel through which Russian issuers, including those under sanctions, attract Western capital for their financing. 38 Russian companies are included in a separate index, the FTSE Russia IOB Index. Some of them are registered in the Russian Federation, some - (Cyprus, Jersey, Great Britain, the Netherlands, the Virgin Islands).

All this speaks to the attractiveness of the exchange for placing foreign issuers. Unlike its American competitors, the LSE also allows for trading those companies that have been listed on other exchanges, but would like to be listed on this prestigious platform. Among them may be persons on sanctions lists, companies undergoing debt restructuring, etc. For them, the exchange has established a limited regime of “admission only to trading.”

The British have always been famous for their loyalty to foreign capital. However, recently the rules have become stricter. They affected not only the verification of the “purity” of investments in the purchase of real estate in London, but also stock exchange regulation. However, these restrictions do not yet apply to the ordinary private investor, who gains access to stock exchange securities through a broker. I invite those who already have experience in trading or passive investing in London Stock Exchange instruments to share their comments with subscribers.

One of the oldest stock exchanges in the world. The exchange was founded in 1801. Today it is the most multinational exchange in the world. More than fifty percent of international share trading occurs on the London Stock Exchange.

Share trading includes more than three hundred foreign listed companies from 60 countries. This exchange itself is a joint-stock company and its shares also participate in trading. In the UK, the stock exchange is the most important element of the primary market. A significant part of new issues is carried out through the stock exchange. Today, the London Stock Exchange is firmly ranked third in the world in terms of capitalization. It carries out the largest number of transactions with shares of foreign issuers. In total, about 3,000 securities rotate. At the same time, London ranks second in trading securities - options and futures.

The stock market on the stock exchange is divided into two groups. The first group is companies that meet the requirements of the FSA (Financial Services Authority in the UK). As a rule, these are companies associated with financial activities and meeting strict rules and guarantees in the financial market. The second group is companies related to the alternative investment market. As a rule, these are companies that do not enter the main exchange market, as well as those that require additional investments in the process of growth and expansion. Here, the important indicator of a company is not its age, but its development prospects and the ability to bring good profits in the future.

The following instruments are traded on the London Stock Exchange:
- Stock
- Bonds
- Eurobonds
- mutual funds

The FTSE 100 stock index is the main stock exchange index and a barometer of the success of the UK economy. The index is calculated based on the share price of 100 listed companies with the highest capitalization. The total capitalization of these companies is 80% of the exchange's capitalization.