The London Stock Exchange (LSE) is a global stock exchange based in Paternoster Square in the City of London, England. Founded in 1801, it is one of the world's oldest continuously operating stock exchanges. As of mid-2025, the exchange had a total market capitalisation of approximately US$5.9 trillion for all listed instruments.[3] Since 2007, it has been operated by the London Stock Exchange Group (LSEG), which is itself a constituent of the FTSE 100 Index and trades under the ticker symbol LSEG.[4]
The exchange hosts over 1,900 companies from more than 60 countries, operating several key equity and debt markets, including its Main Market for established global companies and the Alternative Investment Market (AIM) for smaller, high-growth firms. It also serves as a primary venue for Global Depositary Receipts (GDRs), providing a critical gateway for firms from emerging markets—particularly India, China, and the Middle East—to access international capital.[5] The exchange is a global center for the Natural Resources sector; as of 2025, London maintains the world's largest concentration of mining capital, with a sectoral market capitalization of approximately US$600 billion, representing roughly 13% of the global mining market.[6]
Despite challenges following Brexit, the LSE regained its position as Europe’s largest stock market by total market value in 2024 and 2025, bolstered by a record-breaking performance in its flagship FTSE 100 index, which surpassed the 10,000-point milestone for the first time in early 2026.[7][8]
History
Coffee House
The Royal Exchange was founded by the English financier Thomas Gresham and Sir Richard Clough on the model of the Stock Exchange in Antwerp. It was opened by Queen Elizabeth I in 1571.[9][10]
In the 17th century, stockbrokers were not allowed in the Royal Exchange due to their perceived rude manners. They had to operate from other establishments in the vicinity, notably Jonathan's Coffee-House. At that coffee house, a broker named John Castaing started listing the prices of a few commodities including salt, coal, paper, and exchange rates in 1698. Originally, this was not a daily list and was only published a few days of the week.[11]
This list and activity was later moved to Garraway's coffee house.
Activities
Primary markets
There are two main markets on which companies trade on the LSE: the main market and the alternative investment market.
Main Market
The main market is home to over 1,300 large companies from 60 countries.[27] The FTSE 100 Index ("footsie") is the main share index of the 100 most highly capitalised British companies listed on the Main Market.[28]
Alternative Investment Market
The Alternative Investment Market is LSE's international market for smaller companies.
Post trade
Through the Exchange's Italian arm, Borsa Italiana, the London Stock Exchange Group offers clearing and settlement services for trades through Cassa di Compensazione e Garanzia (CC&G) and Monte Titoli.[31][32] It is the Groups Central Counterparty and covers multiple asset classes throughout the Italian equity, derivatives and bond markets.
CC&G also clears Turquoise derivatives. Monte Titoli is the pre-settlement, settlement, custody and asset services provider of the Group. Monte Titoli operates both on-exchange and OTC trades with over 400 banks and brokers.
Technology
The LSE's trading platform is its own Linux-based edition named Millennium Exchange.[33]
Their previous trading platform TradElect was based on Microsoft's .NET Framework, and was developed by Microsoft and Accenture.[34]
In 2009, despite TradElect only being in use for about two years,[35] after suffering multiple periods of extended downtime and unreliability[36][37] the LSE announced that it was planning to switch to Linux in 2010.[38]
Mergers and acquisitions
On 3 May 2000, it was announced that the LSE would merge with the Deutsche Börse; however this fell through.[46]
On 23 June 2007, the LSE announced that it had agreed on the terms of a recommended offer to the shareholders of the Borsa Italiana S.p.A. The merger of the two companies created a leading diversified exchange group in Europe. The combined group was named the London Stock Exchange Group, but still remained two separate legal and regulatory entities. One of the long-term strategies of the joint company is to expand Borsa Italiana's efficient clearing services to other European markets.
In 2007, after Borsa Italiana announced that it was exercising its call option to acquire full control of MBE Holdings; thus the combined Group would now control Mercato dei Titoli di Stato, or MTS. This merger of Borsa Italiana and MTS with LSE's existing bond-listing business enhanced the range of covered European fixed income markets.
In 2009, the London Stock Exchange Group acquired Turquoise, a Pan-European MTF.[47]
On 9 October 2020, the LSE agreed to sell the Borsa Italiana (including Borsa's bond trading platform MTS) to Euronext
Opening times
Normal trading sessions on the main orderbook (SETS) are from 08:00 to 16:30 local time every day of the week except Saturdays, Sundays and holidays declared by the exchange in advance. The detailed schedule is as follows:
- 1) Trade reporting 07:15–07:50
- 2) Opening auction 07:50–08:00
- 3) Continuous trading 08:00–16:30
- 4) Closing auction 16:30–16:35
- 5) Order maintenance 16:35–17:00
- 6) Trade reporting only 17:00–17:15
Auction periods (SETQx)
SETSqx (Stock Exchange Electronic Trading Service – quotes and crosses) is a trading service for securities less liquid than those traded on SETS.[64]
The auction uncrossings are scheduled to take place at 8:00, 9:00, 11:00, 14:00, and 16:35.
Observed holidays are New Year's Day
Arms
See also
- List of stock exchanges
- List of stock exchanges in the Commonwealth of Nations
- List of stock exchanges in the United Kingdom, the British Crown Dependencies and United Kingdom Overseas Territories
- Stock Exchange forgery 1872–73
- TAURUS (share settlement)
Further reading
External links
References
- Market Statistics - Focus (April 2023) The World Federation of Exchanges focus.world-exchanges.org, World Federation of Exchanges, retrieved 8 May 2023^
- London Stock Exchange (LSE) TradingHours.com, retrieved 3 December 2021^
- James Royal Ph.D. World’s 10 Largest Stock Exchanges By Market Capitalization