When trading on the London Stock Exchange. London Stock Exchange LSE. Stock market on London Stock Exchange

How to get listed on the London Stock Exchange

London stock Exchange LSE: trading mode, indices, reviews

Despite the lingering Braxit, 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 understand what the LSE is, what securities are traded on it, and how a Russian investor can get there.

What is the London Stock Exchange

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The London Stock Exchange (LSE, London Stock Exchange) is the third largest market in the world (about $ 6 trillion). It is second only to its American competitors - and. In terms of the volume of bonds, options and futures contracts, The LSE is unmatched. There the quotations of securities and commodity assets of the Old World are determined.

The homeland of exchange trading is the Netherlands. In 1571, the 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 had to meet at Jonathan's Coffee House. This is how the tradition of making deals in coffee shops arose in London, and later it was transferred to New York.

In 1801, independent traders organized their own exchange, from which the LSE begins its history. Only registered participants, subject to strict rules, could conduct transactions. The regulations of the exchange prescribed the guarantees of the parties, 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 start of the First World War (1914), the London Stock Exchange was the main trading platform on the planet. But due to the hostilities and the decline of the European economy, leadership went overseas and remains there to this day.

After the Second World War, London continued to hold the lead in terms of exchange trading turnover in Europe. In 2007, the LSE acquired a controlling stake in the Italian Borsa Italiana, 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) was formed in its modern form... But in 2011, she herself 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 the LSE (28.7%) to Dubai's Borse Dubai. At this, the London Stock Exchange lost 1/5 of its capitalization, but retained its independence and role as the financial leader in Europe. By the form of ownership, it is a joint-stock company with 400 member companies: banks, brokers, dealers, etc.

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

What is on the LSE for a Russian investor

The main trading on the exchange takes place from 8 am to 4:30 pm GMT. In Moscow it will be from 10.00 to 18.30. The main subject of trade is stocks, depositary receipts, bonds, futures and options. I will list the well-known brands represented here: Shell, BP, HSBC, BBC, Toyota, General Electric, Vodafone, CNN, BASF, Unilever, etc. The entire listing of the exchange 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.

You can find and filter from over 1200 funds at: https://www.londonstockexchange.com/exchange/prices-and-markets/ETFs/ETFs.html.

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

The exception is the portfolio creation service, you need to log in to use it. This is an online simulator with 2 sections - for investors and for traders. In the first one, you can make a portfolio for yourself and see its modeled 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 - 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 agency, one of the best providers of such services, deserves praise. The screener quickly detects paper by name, ticker or code. By entering its description, the user receives comprehensive specifications, graphics, 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, which lists only large issuers;
• Alternative Investment Market is an alternative platform for small capitalization companies. This is a kind of "sandbox" where issuers who do not yet meet the criteria of the main listing are traded. For example, it requires only £ 40,000 in annual revenue.

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

The London Stock Exchange, in conjunction 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 demanded of them is. ( Financial Times Stock Exchange).

In business news, he often sounds in trading jargon like a 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 of not only the British, but also the European economy as a whole. Index ETFs are issued on it as a benchmark, and CFD contracts... To get into the index, the issuer must not only "pass" the capitalization, but also have at least 25% of the shares in free float. The same requirements must be met to get into the main listing. In addition, a number of conditions must be met:

1. The share of the main majority shareholder must not exceed 30%;
2. Stable profitability over the past 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 audit of the British financial regulator FCA;
5. Publish open reporting on.

All indices that are formed on the LSE can be tracked as 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, an ordinary investor has 3 main options. Let's list some of their pros and cons in a pivot table:

According to reviews on the Internet and from my personal experience as the best option worth considering. It has Russian support, maximum American insurance and sane commissions. Among the "foreigners" can also be called the German CapTrader (he represents the same IB in Europe), Saxobank,. All of them have a Russian website and support. But tariffs, the possibility of using the card domestic bank, the package of documents must be specified on the website of each broker.

Russian companies on the LSE

Historically, most of the securities of Russian issuers are quoted here. All of them are presented 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 Thus, in London, the entire top of the Moscow Exchange is duplicated by 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 the separate 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 about the attractiveness of the exchange for the placement of foreign issuers. Unlike its American competitors, the LSE also admits to trading those companies that have been listed on other exchanges, but would like to be listed on this prestigious platform. Among them there may be persons involved in the sanctions lists, companies under debt restructuring, etc. For them, the exchange has a limited "admission only to trade" regime.

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

In the XVIII century. the largest stock market was the London Stock Exchange. Until that time, only three companies traded in London, the East India, African (traded in slaves) and Goodson (traded in North America). At the end of the 17th century. In England, the Bank of England was established, many joint-stock commercial and industrial companies arose, government bonds were issued. As a result, a fast turnover of securities. A particularly rapid development of operations on the stock exchange followed after 1711, as the organization of the South Ocean Trading Company provoked a sharp increase in securities trading. The company's share price by 1720 rose 10 times and amounted to 1050% of the par value. This led to a stock market boom and the beginning of the speculative establishment of joint-stock enterprises in order to inflate stock prices and obtain stock exchange profits. At that time, these processes were called "grunding". Of the 202 enterprises founded in the two years preceding the collapse (1718-1720), most were bloated, and many were of a fantastic nature. For example, a joint-stock company was created for the invention of a perpetual motion machine, another for the trade in human hair. It was planned to create a company to organize a trip to the moon. In 1720 speculation on the London Stock Exchange ended in failure. It was promoted by the Bubble Act, adopted by the British Parliament, according to which all joint stock companies established since 1718 without government permission were subject to liquidation. Following the publication of the act, a stock exchange panic arose. Not only the inflated companies went bankrupt, but also the South Ocean Company, which lobbied for the act (hoping to use it to remove competitors and thereby increase the flow of capital for its operations).

The stock market crash marked the beginning of the regulation of stock exchange activities. In the second half of the 18th century. the organizational structure of the London Stock Exchange was established, and in 1773 the stock dealers acquired their own building for stock trading. For the first time, the inscription "Stock Exchange" appeared on it, and the entrance was paid - 6p. In 1802 the London Stock Exchange moved to another building specially built for stock trading. Since then, it has become a self-governing, closed, private corporation. Only members of the corporation received the right to visit the exchange; new members were accepted by running and having recommendations from two current members of the exchange; the exchange was headed by a committee elected by its members. This is how the modern stock exchange was born. Already in the 1840s, there was a clear tendency in Great Britain to replace full-value money and state paper signs with various credit instruments of circulation - checks, bills of exchange, bank transfers money, bonds, shares, rental securities. By the middle of the XIX century. new in relation to the previous stages of the development of the credit market was that there was not just another increase in the level of concentration and globalization of the credit market, but a qualitatively new type of capital movement appeared, associated with the further transition of credit to a virtual form.

This process was caused by an increase in the separation of credit and money capital from material production and trade. Credit and money capital have turned into a global-virtual category with independent, internal patterns of development. Prior to that, only tendencies towards their virtualization were observed, which finally took shape by the middle of the 19th century. By this time, the main places of deployment of such capitals were identified.

At one time, not only in Marxist literature, but also among bourgeois researchers of the liberal persuasion, the concept of "fictitious capital" was recognized. It included not capital, represented in the form of factories and plants, inventories, machinery and equipment, gold and money (real capital), but the reflection of tangible assets in securities. The latter received an independent existence, and their turnover was cut off from the movement of real capital, which they formally represented in the form of securities. Modern stage circulation of financial and credit instruments in documentary and non-documentary (in the form of electronic files) forms is fundamentally different from their past state - fictitious capital. Two decades ago, the non-cash existence of securities meant entries in special books that were kept by special registrars. Currently cashless organization workflow is most often based on electronic records, which are virtual in nature. The virtual state completely removes restrictions (territorial and time) from fictitious capital and gives it increased mobility and new elements that relate more to information-cosmopolitan categories than to simple paper documents. Securities got the opportunity to move with lightning speed to any holder in any corner of the globe. By the middle of the XIX century. London became a reservoir into which all free funds were poured not only from the island country and the great British Empire, but also from many continental countries of Europe and America. London became an international banker and its market became the central capital market for the whole world. The transformation of London into a world financial center was also facilitated by the fact that the British currency - the pound sterling - became a generally recognized world currency, the leadership of which lasted for about 100 years (from the middle of the 19th century to the middle of the 20th century). Nevertheless, by the second half of the 19th century. stock exchange movement was not limited to one London Stock Exchange. It has developed in many countries and has taken on various forms. Many famous people have played and created capital on the London Stock Exchange, including diplomats, writers and founders labor theory cost. One of the most famous and controversial figures was the prominent diplomat of the first half of XIX in. E.V. Talleyrand (1749-1838). An example of the use of inside information is the activities of a diplomat in London. In the 1830s, he found out in his circles the state of affairs of companies and the government, and through the assistant L. Monron made transactions on the stock exchange. By the end of his life, Talleyrand's fortune was rated as one of the largest in Europe.

Another example is John Law (1671-1729), the founder of the “Law system,” built on the exaltation of credit, banks, the stock exchange, and the stock market game at the expense of production and trade. Many found downright mystical similarities between J. Law and J. Keynes. Often referred to as the "father of inflation," "the wizard of credit," and "the great stock speculator". He hoped that permanent prosperity could be sustained through credit, paper money, and the stock market. Law created and multiplied his fortune as a result of the exchange game on the shares of two companies: the General Bank (Paris) in 1716, which issued "cheap" loans, and the "Company of India" (sometimes called the "Mississippi Company" - since it was originally created for the development of the Mississippi River basin, which then belonged to France) - in 1717. In 1719, the General Bank escaped bankruptcy thanks to the transition into the hands of the state (the new name is the Royal Bank), and the Company of India ended its existence in a major collapse, as a result of which several thousand went bankrupt holders of shares.

David Riccardo (1772-1823) made his millionth fortune primarily by playing on the London Stock Exchange. By the age of 26, as a result of successful transactions on the stock exchange, he became very rich, and soon became one of the largest members of the London financial market... D. Riccardo very successfully turned his theoretical studies into practical achievements, playing on stock exchanges.

The London Stock Exchange is the oldest currently existing in Europe. In addition, it is famous for its internationality: according to 2004 data, it included 340 companies from 60 countries. Despite the fact that there are 21 more exchanges in the UK, the London one remains the most popular. We will tell you about it in this article.

Structure

The London Stock Exchange consists of three main markets: official, unlisted securities and alternative investments.

• Official market. The largest segment intended for firms with a specific history of existence and significant capital. It has two divisions: for international companies and for domestic ones.
• Unregistered market It appeared in 1980 to provide services to small firms. Unfortunately, this experiment was unsuccessful, and due to low liquidity in the early 90s, this market was canceled.
• Alternative investment market. Founded in mid-1995 to serve small firms. No new candidates were presented special requirements in terms of the minimum history of the company and the number of shares already put into circulation. Also, the requirements for the value minimum capital... But the liberalization of 1997 resulted in the London Stock Exchange tightening its rules for the placement of shares.

History

From the beginning of the 16th century, securities trading took place in coffee shops or on the streets. In 1566, Thomas Gresham, who came from Holland, proposed to build a separate room for this purpose. He stated that he would do it at his own expense, but demanded that local residents and the government find a suitable territory. The collected sum of money in the amount of £ 3,500 was purchased desired site land. In 1570, the Royal Exchange was opened.

New exchange

Unfortunately, the Great Fire of London destroyed it, and the new building was only rebuilt in 1669. A gallery was also organized, consisting of 200 places for rent. The goods brought were stored in the basement of the building. In 1698, brokers were expelled from the exchange building for indecent behavior (importunity and noise). Jonathan's coffee shop was chosen for negotiations and deals. At the same time, the first price lists for securities appeared. 50 years later, Jonathan's coffee house repeated the fate of the very first exchange - it burned down. However, the visitors rebuilt the building on their own. In 1773, not far from the coffee shop, brokers rebuilt a new building, christening it "New Jonathan" (later the name was changed to "Stock Exchange").

Stock exchange in the 20th century

In 1987, the exchange underwent a radical transformation. The most significant of them were: the transfer of physical trading to electronic (SEAQ system), the abolition of the minimum commission limit, and the permission for exchange members to combine brokerage and dealer functions. Thanks to the SEAQ electronic system, brokers did not need to enter the trading floor. They could do this in their office.

By the end of 1997, the quotations of the London Stock Exchange were completely transferred to electronic format. Computer trading system SETS has increased the speed of transactions and overall efficiency.

London Stock Exchange

It was founded during the Industrial Revolution of 1877. The London Stock Exchange is now considered the most important European trading center. It has come a long way from the simplest to forward (and then futures) transactions. All this allows consumers and producers of industrial metals to absorb possible losses and hedge risks in case of price surges. You can make deals on options and cash goods.

The stock exchange is located in the old Plantation House building and still retains many traditions of the past. The operating room is designed in the form of a circle, which determines the "circular membership" of the participants in trading operations. Despite the appearance electronic systems, deals are still made by the shouting method. Metals prices are announced in the same way. The London Stock Exchange at Plantation House has a special "sign language" that brokers use during the hype so as not to confuse the given and received orders.

Gold market

There are a precious metaltraded on the London Stock Exchange is gold. It has always stood apart in this institution. Representatives of five firms gather in a separate room for trading. The lead chairman proposes a price, and the five are willing to close deals. After all the agreements and approvals, fixed prices are announced, at which the contracts will be concluded. Copper is bought and sold in a similar way. undoubtedly one of the most famous British financial institutions. But there are three more institutions worth mentioning separately.

London Oil Exchange

Until 1970, the energy market was fairly stable. But as a result of the oil embargo (1973-1974), the formation of OPEC and the Arab-Israeli war, oil producers lost control over prices. Therefore, in the early 80s. the International Petroleum Exchange was founded in London. main reason its appearance is the increased volatility of oil prices. And the non-standard location was due to the increase in oil production in the North Sea region.

The exchange offers both options for gas oil, oil and futures contracts. Its main feature is the ability to exchange a cash market position for a futures position, provided that this exchange takes place outside business hours. The second feature is a long working day (until 20:15). This schedule allows brokers to enter into arbitration contracts with the United States.

British Exchange of Options and Futures

Initially, it had a completely different name: the London Mercantile Exchange. This establishment represents the United Kingdom market for commodity derivatives and agricultural products. Of course, in terms of volume and size, it is significantly inferior to its foreign counterparts (for example, the Chicago Stock Exchange), but this absolutely does not prevent the implementation of a significant proportion of transactions in Europe.

This exchange appeared in the middle of the 20th century on the basis of "terminal associations", which carried out futures transactions on several product lines. Later, it absorbed almost all local markets, and even took part of the markets from the Baltic colleagues (derivatives for ship freight and potatoes). Prices on the London Stock Exchange of Options and Futures are quite favorable. It is possible to conclude transactions both for conventional (barley, wheat, pork, etc.) and for colonial goods (soy, sugar, coffee).

International Exchange of Options and Futures

There is a separate options market in Britain, but it works mainly with Sweden. A wide range of assets are traded on the International Options and Futures Exchange.

Until 1992, these transactions were handled by the trading floor of the London Stock Exchange. Then everything was moved to the building on Cannon Street. Most of the products of this exchange are related to bonds and credit instruments, and a certain part of the transactions concerns stock futures contracts.

The English stock index FTSE 100 is actively traded on the International Exchange. important feature is the ability to work with both European and American options. Until recently, it had the status of the best European stock exchange in equipping.

The International Options and Futures Exchange is the UK's central derivatives market and provides high level liquidity for bonds of Japan, USA, Germany and Italy. But unlike US institutions, it does not deal with foreign exchange derivatives contracts.

Once upon a time, exchanges began with informal meetings at the places where deals were made. Now they have become formalized financial institutions offering clients a wide range of different services. As development progressed, rigid settlement systems and strict rules appeared to minimize the risks of participants.

Most UK exchanges are still not generating significant profits. Their liability is limited to ordinary guarantees (sometimes in the form of securities). The cleaning operations of these institutions are handled by the London Clearing House. It is she who provides guarantees from insurance fund... At the end of 2000, its size was £ 150 million.

Conclusion

Now the London Stock Exchange is one of the five largest institutions of this type in the world. There are 300 companies from 60 countries trading in shares. If we look at Russian firms, the most in demand are the securities of Lukoil, Gazprom and Rosneft. Since 2005, the exchange has launched trading in options and futures on the RTS index.

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

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

Exchange history

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

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

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

Brokers announced prices for coal, coffee and paper. So the London Commodity Market was born. The traders quickly had listeners. Coffee brokers enjoyed fame for another 124 years.

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

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

PLM AIM SFM PSM Markets

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

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 exchange

Two independent entities are listed on the London Stock Exchange:

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

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

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

Pros and cons of the London Stock Exchange

The undoubted plus of the London Stock Exchange is its internationality. About half of transactions in international stocks occur on the LSE. Thanks to this, the Footsy index reflects the general European economic situation, and not just the British one.

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

The international investor will find no flaws in the London Stock Exchange. But the Russian investor will find it unfair to face the difficulties he will face when trying to trade on the LSE.

The most famous stocks traded here

Several Russian companies are listed on the London LSE. Among them are those that are on everyone's lips - Rosneft and Lukoil.

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

How to access trading on the exchange

They 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 floor. I do not recommend buying one, and here I have described the reason... In short, it is better to divide the money into different "baskets", that is, buy securities of different issuers.

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

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

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

Interactive Brokers CapTrader Exante Just2Trade

In fact, the only real large American broker that still works with Russians.

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

The cons are:

• 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 fees
• Various kinds of additional payments

There are few Russian companies that I trust:

1. Finam.
2. Kit-Finance.
3. Opening.

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

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

Rick Keith Opening Finam BCS Tinkoff Promsvyaz

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

Of the pros:

1. Non-buggy Transaq terminal
2. Ability to replenish / withdraw money from the account without commission (through your bank)
3. A bunch of first-class services (for example, you can download the quote history for free)
4. The ability to open an account in foreign jurisdictions.

The disadvantages include the obsession of sellers.

BO and Forex Warning

All my readers have come across binary options or the Forex market at least once. I am very happy if this encounter was painless.

These ways of earning money don't work. Binary options is a financial instrument of a serious investor that trades on the Chicago Stock Exchange. These papers are not available for trade in the form in which they are advertised.

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

But scammers know how to beautifully pack these scams under the guise of a tool for making money in the stock market. The most persistent even call potential victims on the phone. If you receive such a call, don't believe the fluff on the other end of the line. Likewise, ignore ads with a sea of \u200b\u200bgreen 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

Nasdak is the New York Stock Exchange, one of the largest in the world. The exchange tried for a long time to enter the European market, in 2007 it succeeded. US stocks are now available for purchase on the UK LSE.

One of the most popular Nasdak indices is called NASDAQ-100 and includes the blue chips of the US market. There are no banks or insurance companies among them, so the portfolio based on the index is relatively independent from political and economic shocks.

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

FTSE 250, SMALL, ALL, FTSE Russia

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

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

The FTSE SMALL includes companies whose capitalization is inferior to the TOP-250. Among them are startups and innovative projects.

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

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

Investment prospects for these indices

The UK is now in a downturn in production. Even the commodity market of Foggy Albion is in crisis. But England remains a major player in the international arena. If you invest in stock market today and 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 a man, a financial agent at the Queen's court. His name is Thomas Gresh.
2. During the First World War, the stock market returned underground for the first time since the 17th century because the LSE was suspended.
3. During the Second World War, the London LSE worked even during the bombings: from the basement and by phone.
4. In the 70s, the stock exchange merged with 11 other markets, including the Scottish one.
5. In 2011, the London Stock Exchange building was the scene of clashes between protesters and the police; the meeting was held by young people dissatisfied with modern democracy.

The London Stock Exchange is the largest and most international area, with fifty percent of the funds of large companies and corporations all over the world concentrated in its possession!

Foreign issuers have only $ 2,229 billion in current shares here! The system starts working at eleven o'clock in the afternoon, and ends at seven thirty in the evening, it is not uncommon for the largest and most profitable transactions of our time to be carried out in such a short period of time.

The London Stock Exchange can rightfully be considered the leader, as its indices are the most influential and indicative in the world. The index is calculated on the basis of the capitals of the 100 most developed countries, the sum of the assets of these corporations is eighty percent of the stock exchange volume. In order for the London Stock Exchange to add a company or country to the list of its favorites, a number of conditions must be met:

• be a member of the association;
• the company's shares must be highly liquid and be in a fast, free float on the world market;
• be approved by the Commission for suitability and membership in a particular system of the state;
• the cost should always be calculated in euros or pounds;
• not to be a member of dubious organizations, not to engage in speculative activities;
• have strong guarantees and high liquidity.

The London Stock Exchange divides documents into two groups:

• main;
• alternative.

The main group makes up a set of shares that meet all state standards and requirements, they must be directly related to financial activities, have clear guarantees and positive qualities.

The alternative group includes those securities that require additional investment and support in the process of circulation. When developing such shares, market participants should aim at increasing the profitability of the security, which would help it enter the first group of the association - the main one.

European associations

The European stock market provides any of its participants with tremendous opportunities, but getting into the work is not so easy in practice. Due to the vast experience and incredibly large capital, retail space can occupy a leading position in the development of trade. The main sources of profit for this market are:

• London Stock Exchange;
• Irish Stock Exchange;
• Bourse;
• Warsaw Stock Exchange.

The London Stock Exchange is the best place to sell high-value assets as it
has the status of a joint stock company, five hundred years ago brokers made the most successful deals within the walls of this luxurious place. The following main functions of this joint-stock community can be distinguished:

• organization and regulation of the UK securities market;
• organization of trades and transactions of the international level;
• regulation of listing in the country and abroad, in particular;
• creation and regulation of indices of global importance;
• stimulating capital attraction, its turnover.

Note!!! This exchange, by its activities, affects the entire financial world of Europe, so its functionality is difficult to overestimate!

The UK requires its customers complete list commercial and financial information, this is the basic rule of entry into work and collaboration. In order for a company to become a member, it needs to have a share capital of seven hundred thousand pounds, such restrictions arise from the high turnover and liquidity of the organization's certificates. Restrictions are also imposed on the powers of active voting shareholders; their share in the total volume of assets is strictly controlled and regulated. Exact control is also exercised over the speculative activities of trading participants.

The Warsaw Stock Exchange has recently begun its dynamic development and has already managed to break out into the top three leaders in the central part of the continent. Seven years ago, the capitalization of the association broke all records; it became the second most important of its kind. The Warsaw Stock Exchange includes more than four hundred companies with the largest capital, the assets of which are the most influential, of which fifty are foreign. The value of Polish companies that are involved in this area of \u200b\u200bactivity is 137 billion euros. In 2014, the organization numbered nine thousand futures companies. Warsaw can offer every investor:

• index futures contracts;
• futures contracts for a specific currency;
• contracts with shares for the most liquid and profitable enterprises;
• options for successful enterprises and companies;
• units of indices.

Since 1991, the organization is subject to financial supervision, which carries out all the necessary procedures for the protection and implementation of new technologies in work. Securities circulating in Warsaw can apply to work in any country.

The Paris Stock Exchange occupies an honorable second place, ahead of it only the London Stock Exchange, which has reached the apogee of development and greatness. After the closure of the series six years ago trading platforms, the Paris stock exchange began to actively develop and advance in the ranking, and all this thanks to the merger of the following financial areas:

• Amsterdam;
• Parisian;
• Brussels;
• Lisbon.

Such changes benefited the whole continent, after which the London Stock Exchange also strengthened, followed by the Warsaw Stock Exchange, which entailed a number of positive changes.

Today, the strength of the European Union is undeniable, the influence and huge volumes of investments make the reliability of this area incredibly strong.