Stock market history in the UK

2. Stock markethistory in the UK • Presentation • History • Crisis

3. 1) Presentation

4. London Stock exchange • One of the world’soldest stock exchanges • Starting life in the coffee houses of 17th century in London • The Royal Exchange founded by Thomas Gresham • It opened in 1571 • During the 17th Century, stockbrokerswere not allowed in the Royal Exchange due to their rude manners

5. 2) History

6. 2) History • 1698 A man, called John Casting began to issue « atthis office in Jonathan’s Coffee-House » a list of stock and commodityprices • The earliestevidence of organisedtrading in marketablesecurities in London

7. 2) History • Stock dealers wereexpelledfrom the Royal Exchange for rowdiness • Theystarted to operate in the streets and coffee houses • 1761 A group of 150 stockbrokers and jobbersformed a club atJonathan’s to buy and sellshares

8. 2) History • 1773 The brokers erectedtheirown building in Sweeting’sAlley. This building wasbrieflyknown as « New Jonathan’s » untiltheirmemberschanged the name to « The Stock Exchange » • 1801 The first regulated exchange came into existence in London on 3 March : The modern Stock Exchange wasborn

9. 2) History • 1812 Creation of the first codifiedrule book • 1845 Speculativefever : « Railway Mania » swept the country • 1854 The Stock Exchange wasrebuilt

10. 2) History • 1854 A new Deed of Settlement for the Stock Exchange came into force • 1914 Beginning of the world war 14-18. The consequenceisthat the Exchange marketclosedfrom the end of July until the new year. A Stock Exchange Battalion of Royal Fusillerswasevenformed

11. 2) History • 1939 Duringthe beginning of World WarTwo, the Exchange closed for 6 days • 1973 First femalemembersadmitted to the market • 1986 This yearis the year of the deregulation of the market, known as « Big bang »

12. 2) History • 1991 Replacement of the governingCouncil of the Exchange by a Board of Directors. The tradingnamebecomes « The London Stock Exchange ». • 1995 Creation of the AIM. The international market for growingcompanieswichisoperated by the LSE

13. 2) History • 1997 SETS ( Sock Exchange ElectronicTrading Service) launched to bringgreater speed and efficiency to the market • 2003 Creation of EDX London • 2004 New headquarter in Paternoster Square

14. 2) History • 2007 The London Stock Exchange mergedwithBorsaItalianacausing the creation of the London Stock Exchange Group

15. 3) Crisis • The South Seabubble • The panic of 1825 • Overend, Guerney & Co • The subprimecrisis

16. 3) Crisis • The South Seabubble

17. 3) Crisis • The 1720 South Seabubble : One of history’sworstfinancialbubbles. Speculation mania thatcausedfinancialruin for many British investors. Soaringfrom 128.5 pounds to over 1000 pounds in ninemonths.

18. 3) Crisis • The panic of 1825 : Started in the Bank of Englandarising in part out of speculativeinvestments in Latin America. The crisisprecipitated the closing of six London banks and sixty country banks in England. Injection of gold reservesfrom the bank of France saved the bank of Englandfromcomplete collapse.

19. 3) Crisis • Overend, Gurney & Co : Overend, Gurney & Companywas a London wholesale discount bank, known as « the bankers’ bank ». It collapsed in 1866.

20. 3) Crisis • SubprimeCrisis : Most recentcrisisthat the United Kingdom has experienced. It started in 2007 in the United States and soondevelopedin the UK and manyEuropeans countries. It