international stock exchanges

7/29/2019 international stock exchanges

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INDEX

CHAPTER

NO.

TITLE PAGE NO.

1. STOCK EXCHANGE 02

2. NEW YORK STOCK EXCHANGE (UNITEDSTATES)

05

3. NASDAQ (UNITED STATES) 12

4. LONDON STOCK EXCHANGE 15

5. TOKYO STOCK EXCHANGE 23

6. EURONEXT 26

7. FRANKFURT STOCK EXCHANGE 30

8. SHANGAI STOCK EXCHANGE 32

9. BME EXCHANGE 35

10. ITALIAN STOCK EXCHANGE 37

11. HONG KONG STOCK EXCHANGE 39

12. BIBILOGRAPHY 42

13. CONCLUSION 43


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CHAPTER-1

STOCK EXCHANGE

An exchange is an institution, organization, or association which hosts a market wherestocks, bonds, options and futures, and commodities are traded. Buyers and sellers cometogether to trade during specific hours on business days. Exchanges impose rules andregulations on the firms and brokers that are involved with them. If a particular companyis traded on an exchange, it is referred to as "listed".

Companies that are not listed on a stock exchange are sold OTC (short for Over-The-Counter). Companies that have shares traded OTC are usually smaller and riskierbecause they do not meet the requirements to be listed on a stock exchange

A stock exchange is a form of exchange which provides services for stock brokers andtraders to trade stocks, bonds, and other securities. Stock exchanges also provide facilitiesfor issue and redemption of securities and other financial instruments, and capital eventsincluding the payment of income and dividends. Securities traded on a stock exchangeinclude shares issued by companies, unit trusts, derivatives, pooled investment productsand bonds.

To be able to trade a security on a certain stock exchange, it must be listed there. Usually,there is a central location at least for record keeping, but trade is increasingly less linkedto such a physical place, as modern markets are electronic networks, which gives themadvantages of increased speed and reduced cost of transactions. Trade on an exchange isby members only.

The initial offering of stocks and bonds to investors is by definition done in the primarymarket and subsequent trading is done in the secondary market. A stock exchange isoften the most important component of a stock market. Supply and demand in stockmarkets are driven by various factors that, as in all free markets, affect the price of stocks(see stock valuation).

There is usually no compulsion to issue stock via the stock exchange itself, nor muststock be subsequently traded on the exchange. Such trading is said to be off exchange orover-the-counter. This is the usual way that derivatives and bonds are traded.Increasingly, stock exchanges are part of a global market for securities.


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NSE and BSE are the major stock exchanges of India

NSE

The National Stock Exchange (NSE)is stock exchange located at Mumbai, India. It is the16th largest stock exchange in the world by market capitalization and largest in India bydaily turnover and number of trades, for both equities and derivative trading.NSE has amarket capitalization of around US$985 billion and over 1,646 listings as of December2011.Though a number of other exchanges exist, NSE and the Bombay Stock Exchangeare the two most significant stock exchanges in India, and between them are responsiblefor the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty,known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty majorstocks weighted by market capitalisation.

NSE is mutually owned by a set of leading financial institutions, banks, insurancecompanies and other financial intermediaries in India but its ownership and managementoperate as separate entities.There are at least 2 foreign investors NYSE Euronext andGoldman Sachs who have taken a stake in the NSE.As of 2006, the NSE VSATterminals, 2799 in total, cover more than 1500 cities across India.In 2011, NSE was thethird largest stock exchange in the world in terms of the number of contracts (1221million) traded in equity derivatives.It is the second fastest growing stock exchange in theworld with a recorded growth of 16.6%.


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BSE

The Bombay Stock Exchange (BSE) (Bombay hare Bzar) (formerly, The Stock

Exchange, Bombay) is a stock exchange located on Dalal Street, Mumbai and is theoldest stock exchange in Asia. The equity market capitalization of the companies listedon the BSE was US$1 trillion as of December 2011, making it the 6th largest stockexchange in Asia and the 14th largest in the world. The BSE has the largest number oflisted companies in the world.

As of March 2012, there are over 5,133 listed Indian companies and over 8,196 scrips onthe stock exchange, the Bombay Stock Exchange has a significant trading volume. TheBSE SENSEX, also called "BSE 30", is a widely used market index in India and Asia.Though many other exchanges exist, BSE and the National Stock Exchange of Indiaaccount for the majority of the equity trading in India. While both have similar total

market capitalization (about USD 1.6 trillion), share volume in NSE is typically twotimes that of BSE.

International stock exchanges

New York Stock Exchange (United States) NASDAQ (United States) London Stock Exchange (UK) Tokyo Stock Exchange (Japan) Euronext (Belgium, France, Netherlands, Portugal) Frankfurt Stock Exchange (Germany) Shanghai Stock Exchange (China) BME Exchange (Spain) Italian Stock Exchange (Italy) Hong Kong Stock Exchange (Hong Kong)


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CHAPTER-2

NEW YORK STOCK EXCHANGE (UNITED STATES)

The New York Stock Exchange, commonly referred to as the NYSE, is a stock exchangelocated at 11 Wall Street, Lower Manhattan, New York City, New York, United States. Itis by far the world's largest stock exchange by market capitalization of its listedcompanies at US$14.242 trillion as of Dec 2011. Average daily trading value wasapproximately US$153 billion in 2008.The NYSE is operated by NYSE Euronext (NYSE: NYX), which was formed by theNYSE's 2007 merger with the fully electronic stock exchange Euronext. The NYSEtrading floor is located at 11 Wall Street and is composed of four rooms used for thefacilitation of trading. A fifth trading room, located at 30 Broad Street, was closed inFebruary 2007. The main building, located at 18 Broad Street, between the corners ofWall Street and Exchange Place, was designated a National Historic Landmark in 1978,

as was the 11 Wall Street building.

Type Stock exchange

Location New York City, New York, United States

Founded March 8, 1817

Owner NYSE Euronext

Currency United States dollar

No. of listings 2,308

MarketCap US$ 14.242 trillion (Dec 2011)

Volume US$ 20.161 trillion (Dec 2011)

Indexes Dow Jones Industrial AverageS&P 500NYSE Composite
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History

The origin of the NYSE can be traced to May 17, 1792, when the ButtonwoodAgreement was signed by 24stockbrokers outside of 68 Wall Street in New York undera buttonwood tree on Wall Street. On March 8, 1817, the organization drafted aconstitution and renamed itself the "New York Stock & Exchange Board."AnthonyStockholm was elected the Exchange's first president.

The first central location of the Exchange was a room, rented in 1792 for $200 a month,located at 40 Wall Street. After that location was destroyed in the Great Fire of NewYorkin 1835, the Exchange moved to a temporary headquarters. In 1863, the New YorkStock & Exchange Board changed to its current name, the New York Stock Exchange. In1865, the Exchange moved to 1012 Broad Street.

The New York Stock Exchange was closed for ten days starting September 20, 1873,because of the Panic of 1873.

The volume of stocks traded increased sixfold in the years between 1896 and 1901, and a

larger space was required to conduct business in the expanding marketplace.[10]

EightNew York City architects were invited to participate in a design competition for a newbuilding; ultimately, the Exchange selected the neoclassic designsubmitted byarchitect George B. Post. Demolition of the Exchange building at 10 Broad Street, andadjacent buildings, started on May 10, 1901.

The new building, located at 18 Broad Street, cost $4 million and opened on April 22,1903. The trading floor, at 109 140 feet (33 42.5 m), was one of the largest volumesof space in the city at the time, and had a skylight set into a 72-foot (22 m)-high ceiling.The main faade of the building features six tall columns with Corinthian capitals, toppedby a marble pediment containing high-relief sculptures by John Quincy AdamsWard with the collaboration ofPaul Wayland Bartlett, carved by the Piccirilli Brothers,

representing Integrity Protecting the Works of Man. The building was listed as a NationalHistoric Landmarkand added to the National Register of Historic Places on June 2, 1978.

In 1922, a building for offices, designed by Trowbridge & Livingston, was added at 11Wall Street, as well as a new trading floor called the Garage. Additional trading floorspace was added in 1969 theBlue Room, and in 1988 theEBR orExtended Blue Room,with the latest technology for information display and communication. Yet anothertrading floor was opened at 30 Broad Street called theBond Room in 2000. As the NYSEintroduced its hybrid market, a greater proportion of trading came to be executedelectronically, and due to the resulting reduction in demand for trading floor space, theNYSE decided to close the 30 Broad Street trading room in early 2006. As the adoption

of electronic trading continued to reduce the number of traders and employees on thefloor, in late 2007, the NYSE closed the rooms created by the 1969 and 1988 expansions.

The Stock Exchange Luncheon Club was situated on the seventh floor from 1898 until itsclosure in 2006.

The NYSE announced its plans to merge with Archipelago on April 21, 2005, in a dealintended to reorganize the NYSE as a publicly traded company. NYSE's governing boardvoted to merge with rival Archipelago on December 6, 2005, and become a for-profit,
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public company. It began trading under the name NYSE Group on March 8, 2006. A littleover one year later, on April 4, 2007, the NYSE Group completed its merger withEuronext, the European combined stock market, thus forming the NYSE Euronext, thefirst transatlantic stock exchange.

Presently, Marsh Carter is Chairman of the New York Stock Exchange, having

succeeded John S. Reedand the CEO is Duncan Niederauer, having succeeded JohnThain.

Notable events

The exchange was closed shortly after the beginning of World War I (July 31, 1914), butit partially re-opened on November 28 of that year in order to help the war effort bytrading bonds,[13]and completely reopened for stock trading in mid-December.

On September 16, 1920, a bomb exploded on Wall Street outside the NYSE building,killing 33 people and injuring more than 400. The perpetrators were never found. TheNYSE building and some buildings nearby, such as the JP Morganbuilding, still havemarks on their faades caused by the bombing.

The Black Thursday crash of the Exchange on October 24, 1929, and the sell-off panicwhich started on Black Tuesday, October 29, are often blamed for precipitating the GreatDepression of 1929. In an effort to try to restore investor confidence, the Exchangeunveiled a fifteen-point program aimed to upgrade protection for the investing public onOctober 31, 1938.

On October 1, 1934, the exchange was registered as a national securities exchange with

the U.S. Securities and Exchange Commission, with a president and a thirty-threemember board. On February 18, 1971 the non-profit corporation was formed, and thenumber of board members was reduced to twenty-five.

One ofAbbie Hoffman's well-known publicity stunts took place in 1967, when he ledmembers of the Yippie movement to the Exchange's gallery. The provocateurs hurledfistfuls of real dollars mixed with fake dollars toward the trading floor below. Sometraders booed, and some collected the apparent bounty. [ The press was quick to respondand, by evening, the event had been reported around the world. (The stock exchange laterspent $20,000 to enclose the gallery with bulletproof glass.) Hoffman wrote a decadelater, "We didnt call the press; at that time we really had no notion of anything called amedia event.

On October 19, 1987, the Dow Jones Industrial Average (DJIA) dropped 508 points, a22.6% loss in a single day, the second-biggest one-day drop the exchange hadexperienced, prompting officials at the exchange to invoke for the first time the " circuitbreaker" rule to halt all trading. This was a very controversial move and led to a quickchange in the rule; trading now halts for an hour, two hours, or the rest of the day whenthe DJIA drops 10, 20, or 30 percent, respectively. The rationale behind the tradinghalt was to give investors a chance to cool off and reevaluate their positions. Black
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Monday was followed by Terrible Tuesday, a day in which the Exchange's systems didnot perform well and some people had difficulty completing their trades.

Consequently there was another major drop for the Dow on October 13, 1989; the Mini-Crash of 1989. The crash was apparently caused by a reaction to a news story of a$6.75 billion leveraged buyout deal for UAL Corporation, the parent company ofUnited

Airlines, which broke down. When the UAL deal fell through, it helped trigger thecollapse of the junk bond market causing the Dow to fall 190.58 points, or 6.91 percent.

Similarly, there was a panic in the financial world during the year of 1997; the AsianFinancial Crisis. Like the fall of many foreign markets, the Dow suffered a 7.18% drop invalue (554.26 points) on October 27, 1997, in what later became known as the 1997Mini-Crashbut from which the DJIA recovered quickly.

On January 26, 2000, an altercation during filming of the music video for "Sleep Now inthe Fire", which was directed by Michael Moore, caused the doors of the exchange to beclosed and the band Rage Against the Machine to be escorted from the site bysecurity. after band members attempted to gain entry into the exchange. Trading on the

exchange floor, however, continued uninterrupted

On May 6, 2010, the Dow Jones Industrial Average posted its largest intraday percentagedrop since the October 19, 1987 crash, with a 998 point loss later being called the FlashCrash (as the drop occurred in minutes before rebounding). The SEC and CFTCpublished a report on the event, although it did not come to a conclusion as to the cause.The regulators found no evidence that the fall was caused by erroneous ("fat finger")orders.

Trading

The New York Stock Exchange (sometimes referred to as "the Big Board") provides ameans for buyers and sellers to trade shares ofstockin companies registered for publictrading. The NYSE is open for trading Monday through Friday from 9:30 am 4:00 pm ET, with the exception of holidays declared by the Exchange in advance.

On the trading floor, the NYSE trades in a continuous auction format, where traders canexecute stock transactions on behalf of investors. They will gather around the appropriatepost where a specialist broker, who is employed by an NYSE member firm (that is,he/she is not an employee of the New York Stock Exchange), acts as an auctioneer inan open outcry auction market environment to bring buyers and sellers together and tomanage the actual auction. They do on occasion (approximately 10% of the time)

facilitate the trades by committing their own capital and as a matter of course disseminateinformation to the crowd that helps to bring buyers and sellers together. The auctionprocess moved toward automation in 1995 through the use of wireless hand heldcomputers (HHC). The system enabled traders to receive and execute orderselectronically via wireless transmission. On September 25, 1995, NYSE member MichaelEinersen, who designed and developed this system, executed 1000 shares of IBM throughthis HHC ending a 203 year process of paper transactions and ushering in an eraofautomated trading.
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As of January 24, 2007, all NYSE stocks can be traded via its electronic HybridMarket (except for a small group of very high-priced stocks). Customers can now sendorders for immediate electronic execution, or route orders to the floor for trade in theauction market. In the first three months of 2007, in excess of 82% of all order volumewas delivered to the floor electronically.[19]NYSE works with US regulators like

the SEC and CFTC to coordinate risk management measures in the electronic tradingenvironment through the implementation of mechanisms like circuit breakers andliquidity replenishment points.

Until 2005, the right to directly trade shares on the exchange was conferred upon ownersof the 1366 "seats". The term comes from the fact that up until the 1870s NYSE memberssat in chairs to trade. In 1868, the number of seats was fixed at 533, and this number wasincreased several times over the years. In 1953, the number of seats was set at 1,366.These seats were a sought-after commodity as they conferred the ability to directly tradestock on the NYSE, and seat holders were commonly referred to as members of theNYSE. The Barnes family is the only known lineage to have five generations of NYSEmembers: Winthrop H. Barnes (admitted 1894), Richard W.P. Barnes (admitted 1926),

Richard S. Barnes (admitted 1951), Robert H. Barnes (admitted 1972), Derek J.Barnes (admitted 2003). Seat prices varied widely over the years, generally falling duringrecessions and rising during economic expansions. The most expensive inflation-adjustedseat was sold in 1929 for $625,000, which, today, would be over six million dollars. Inrecent times, seats have sold for as high as $4 million in the late 1990s and as low as$1 million in 2001. In 2005, seat prices shot up to $3.25 million as the exchange enteredinto an agreement to merge with Archipelago and become a for-profit, publicly tradedcompany. Seat owners received $500,000 in cash per seat and 77,000 shares of the newlyformed corporation. The NYSE now sells one-year licenses to trade directly on theexchange. Licences for floor trading are available for $40,000 and a licence for bondtrading is available for as little as $1,000 as of 2010.[21]Neither are resell-able, but may

be transferable in during the change of ownership of a cooperation holding a tradinglicence.

NYSE Composite Index

In the mid-1960s, the NYSE Composite Index (NYSE: NYA) was created, with a basevalue of 50 points equal to the 1965 yearly close.[22]This was done to reflect the value ofall stocks trading at the exchange instead of just the 30 stocks included in the Dow JonesIndustrial Average. To raise the profile of the composite index, in 2003 the NYSE set itsnew base value of 5,000 points equal to the 2002 yearly close.
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Timeline

In 1792, The NYSE acquires its first traded securities. In 1817, The constitution of theNew York Stock and Exchange Board is adopted.[25]In 1867, The First Stock Ticker. In1896, Dow Jones Industrial Average first published inThe Wall Street Journal.[26]In1903, NYSE moves into new quarters at 18 Broad Street. In 1906, Dow exceeds 100 on

January 12. In 1907, Panic of 1907. In 1914, World War I causes the longest exchangeshutdown: four months, two weeks; re-opening December 12 brings the largest one-daypercentage drop in the DJIA (24.4%). In 1915, Market price is given in dollars. In 1929,Central quote system established; Black Thursday, October 24 and Black Tuesday,October 29 signal the end of the Roaring Twentiesbull market. In 1943, Trading floor isopened to women. In 1949, Longest (eight-year) bull marketbegins.[28]

In 1954, Dow surpasses its 1929 peak in inflation-adjusted dollars. In 1956, Dow closesabove 500 for the first time on March 12. In 1966, the NYSE begins a composite index ofall listed common stocks. This is referred to as the "Common Stock Index" and istransmitted daily. The starting point of the index is 50. It is later renamed the NYSEComposite Index. In 1967, Protesters led by Abbie Hoffman throw mostly fake dollarbills at traders from gallery, leading to the installation of bullet-proof glass. In1970, Securities Investor Protection Corporation established. In 1971, NYSE recognizedas Not-for-Profit organization. In 1972, Dow closes above 1,000 for the first time onNovember 14. In 1977, Foreign brokers are admitted to NYSE. In 1980, New YorkFutures Exchange established. In 1982, Longest bull market in DJIA history begins. In1987, Black Monday, October 19, sees the second-largest one-day DJIA percentage drop(22.6%) in history. In 1991, Dow exceeds 3,000. In 1995, Dow exceeds 5,000. In 1996,Real-time ticker introduced. In 1999, Dow exceeds 10,000 on March 29. In 2000, Dowpeaks at 11,722.98 on January 14; first NYSE global index is launched under the tickerNYIID.

In 2001, Trading in fractions (n/16) ends, replaced by decimals (increments of $.01,see Decimalization). When the September 11, 2001 attacks occur, the NYSE was closedfor 4 sessions. In 2003, NYSE Composite Index relaunched and value set equal to 5,000points. In 2006, NYSE and ArcaEx merge, creatingNYSE Arca and forming the publiclyowned, for-profit NYSE Group, Inc.; in turn, NYSE Group merges withEuronext,creating the first trans-Atlantic stock exchange group; DJIA tops 12,000 on October 19.In 2007, US President George W. Bush shows up unannounced to the Floor about anhour and a half before a Federal Open Market Committee interest-rate decision onJanuary 31. NYSE announces its merger with theAmerican Stock Exchange; NYSEComposite closes above 10,000 on June 1; DJIA exceeds 14,000 on July 19 and closes atan all time peak of 14,164.53 on October 9. This was the peak before the 20082009

bust.On September 15, 2008, the DJIA loses more than 500 points amid fears of bank failures,resulting in a permanent prohibition ofnaked short selling and a three-week temporaryban on all short selling of financial stocks; in spite of this, record volatility continues forthe next two months, culminating at 5-year market lows. In 2009, Dow closes at6547.05 on March 9 reaching a 12 year low. Returns to 10,015.86 on October 14.
http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-24http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-24http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-24http://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-autogenerated1-25http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-autogenerated1-25http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-autogenerated1-25http://en.wikipedia.org/wiki/Broad_Street_(Manhattan)http://en.wikipedia.org/wiki/Panic_of_1907http://en.wikipedia.org/wiki/DJIAhttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Roaring_Twentieshttp://en.wikipedia.org/wiki/Market_trends#Bull_markethttp://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-27http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-27http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-27http://en.wikipedia.org/wiki/Inflation#Cost-of-living_allowancehttp://en.wikipedia.org/wiki/Abbie_Hoffmanhttp://en.wikipedia.org/wiki/Securities_Investor_Protection_Corporationhttp://en.wikipedia.org/wiki/New_York_Board_of_Tradehttp://en.wikipedia.org/wiki/New_York_Board_of_Tradehttp://en.wikipedia.org/wiki/Black_Monday_(1987)http://en.wikipedia.org/wiki/Decimalisationhttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/NYSE_Compositehttp://en.wikipedia.org/wiki/ArcaExhttp://en.wikipedia.org/wiki/NYSE_Arcahttp://en.wikipedia.org/wiki/Euronexthttp://en.wikipedia.org/wiki/George_W._Bushhttp://en.wikipedia.org/wiki/Federal_Open_Market_Committeehttp://en.wikipedia.org/wiki/American_Stock_Exchangehttp://en.wikipedia.org/wiki/Naked_short_sellinghttp://en.wikipedia.org/wiki/Short_sellinghttp://en.wikipedia.org/wiki/Short_sellinghttp://en.wikipedia.org/wiki/Naked_short_sellinghttp://en.wikipedia.org/wiki/American_Stock_Exchangehttp://en.wikipedia.org/wiki/Federal_Open_Market_Committeehttp://en.wikipedia.org/wiki/George_W._Bushhttp://en.wikipedia.org/wiki/Euronexthttp://en.wikipedia.org/wiki/NYSE_Arcahttp://en.wikipedia.org/wiki/ArcaExhttp://en.wikipedia.org/wiki/NYSE_Compositehttp://en.wikipedia.org/wiki/September_11,_2001_attackshttp://en.wikipedia.org/wiki/Decimalisationhttp://en.wikipedia.org/wiki/Black_Monday_(1987)http://en.wikipedia.org/wiki/New_York_Board_of_Tradehttp://en.wikipedia.org/wiki/New_York_Board_of_Tradehttp://en.wikipedia.org/wiki/Securities_Investor_Protection_Corporationhttp://en.wikipedia.org/wiki/Abbie_Hoffmanhttp://en.wikipedia.org/wiki/Inflation#Cost-of-living_allowancehttp://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-27http://en.wikipedia.org/wiki/Market_trends#Bull_markethttp://en.wikipedia.org/wiki/Roaring_Twentieshttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/DJIAhttp://en.wikipedia.org/wiki/Panic_of_1907http://en.wikipedia.org/wiki/Broad_Street_(Manhattan)http://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-autogenerated1-25http://en.wikipedia.org/wiki/The_Wall_Street_Journalhttp://en.wikipedia.org/wiki/Dow_Jones_Industrial_Averagehttp://en.wikipedia.org/wiki/New_York_Stock_Exchange#cite_note-24


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Derailed planned merger with Deutsche Brse

On February 15, 2011 NYSE and Deutsche Brse announced their merger to form a newcompany, as yet unnamed, wherein Deutsche Brse shareholders will have 60%

ownership of the new entity, and NYSE Euronext shareholders will have 40%.On February 1, 2012, the European Commissionblocked the merger of NYSE withDeutsche Brse, after commissionerJoaquin Almunia stated that the merger "would haveled to a near-monopoly in European financial derivatives worldwide". Instead, DeutscheBrse and NYSE will have to sell either theirEurex derivatives orLIFFE shares in orderto not create a monopoly.

On February 2, 2012, NYSE Euronext and Deutsche Brse agreed with strong oppositionby the EU for the planned merger, to scrap the merger.

Trading schedule

Regular trading hours are from 9:30 am to 4:00 pm Eastern Time
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CHAPTER-3

NASDAQ (UNITED STATES)

The NASDAQ Stock Market, also known as simply the NASDAQ, is an American stockexchange. "NASDAQ" originally stood for "National Association of Securities DealersAutomated Quotations".[3] It is the second-largest stock exchange by marketcapitalization in the world, after the New York Stock Exchange. The exchange is ownedby NASDAQ OMX Group, which also owns the OMX stock exchange network.

Type Stock exchange

Location New York City, New York, U.S.

Founded February 4, 1971

Owner NASDAQ OMX Group

Currency United States dollar

No. of listings 2,784 (Dec 2011)[1]

MarketCap US$ 4.44 trillion (Jan 2012)

Volume US$982 billion (Feb 2011)

Indexes NASDAQ CompositeNASDAQ-100NASDAQ Biotechnology Index

Website NASDAQ.com
http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/NASDAQ_OMX_Grouphttp://en.wikipedia.org/wiki/NASDAQ_OMX_Grouphttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/NASDAQ#cite_note-companies-0http://en.wikipedia.org/wiki/NASDAQ#cite_note-companies-0http://en.wikipedia.org/wiki/NASDAQ#cite_note-companies-0http://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Orders_of_magnitude_(numbers)#1012http://en.wikipedia.org/wiki/Orders_of_magnitude_(numbers)#109http://en.wikipedia.org/wiki/Nasdaq_Compositehttp://en.wikipedia.org/wiki/NASDAQ-100http://en.wikipedia.org/wiki/NASDAQ_Biotechnology_Indexhttp://www.nasdaq.com/http://www.nasdaq.com/http://www.nasdaq.com/http://en.wikipedia.org/wiki/NASDAQ_Biotechnology_Indexhttp://en.wikipedia.org/wiki/NASDAQ-100http://en.wikipedia.org/wiki/Nasdaq_Compositehttp://en.wikipedia.org/wiki/Orders_of_magnitude_(numbers)#109http://en.wikipedia.org/wiki/Orders_of_magnitude_(numbers)#1012http://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/NASDAQ#cite_note-companies-0http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/NASDAQ_OMX_Grouphttp://en.wikipedia.org/wiki/Stock_exchange


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History

NASDAQ was founded in 1971 by the National Association of SecuritiesDealers (NASD), who divested themselves of it in a series of sales in 2000 and 2001. It isowned and operated by the NASDAQ OMX Group, the stock of which was listed on itsown stock exchange beginning July 2, 2002, under the ticker symbol NASDAQ: NDAQ.

It is regulated by the Financial Industry Regulatory Authority (FINRA), the successor tothe NASD.

When the NASDAQ stock exchangebegan trading on February 8, 1971, it was theworld's first electronic stock market. At first, it was merely acomputer bulletinboard system and did not actually connect buyers and sellers[4]. The NASDAQ helpedlower the spread (the difference between the bid price and the ask price of the stock) butsomewhat paradoxically was unpopular among brokerages because they made much oftheir money on the spread.

NASDAQ was the successor to the over-the-counter(OTC) system of trading. As late as1987, the NASDAQ exchange was still commonly referred to as the OTC in media and

also in the monthly Stock Guides issued by Standard & Poor's Corporation.

Over the years, NASDAQ became more of a stock market by adding trade and volumereporting and automated trading systems. NASDAQ was also the first stock market in theUnited States to start trading online. Nobody before them had ever done this, highlightingNASDAQ-traded companies (usually in technology) and closing with the declaration thatNASDAQ is "the stock market for the next hundred years." Its main index isthe NASDAQ Composite, which has been published since its inception. However, itsexchange-traded fund tracks the large-cap NASDAQ-100index, which was introduced in1985 alongside the NASDAQ 100 Financial Index.

Until 1987, most trading occurred via the telephone, but during the October 1987 stock

market crash, market makers often didn't answer their phones. To counteract this,the Small Order Execution System (SOES) was established, which provides an electronicmethod for dealers to enter their trades. NASDAQ requires market makers to honortrades over SOES.

In 1992, it joined with the London Stock Exchange to form the first intercontinentallinkage ofsecurities markets. NASD spun off NASDAQ in 2000 to form a publiclytraded company, theNASDAQ Stock Market, Inc.

In 2006 NASDAQ changed from stock market to licensed national exchange.

On November 8, 2007, NASDAQ bought the Philadelphia Stock Exchange (PHLX) forUS$652 million. PHLX is the oldest stock exchange in Americahaving been inoperation since 1790.

To qualify for listing on the exchange, a company must be registered with the UnitedStates Securities and Exchange Commission (SEC), have at least three marketmakers (financial firms that act as brokers or dealers for specific securities) and meetminimum requirements for assets, capital, public shares, and shareholders.
http://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/NASDAQ_OMX_Grouphttp://en.wikipedia.org/wiki/Ticker_symbolhttp://www.nasdaq.com/symbol/ndaqhttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Computer_bulletin_boardhttp://en.wikipedia.org/wiki/Computer_bulletin_boardhttp://en.wikipedia.org/wiki/NASDAQ#cite_note-3http://en.wikipedia.org/wiki/NASDAQ#cite_note-3http://en.wikipedia.org/wiki/NASDAQ#cite_note-3http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/w/index.php?title=Stock_Guide&action=edit&redlink=1http://en.wikipedia.org/wiki/Standard_%26_Poor%27shttp://en.wikipedia.org/wiki/NASDAQ_Compositehttp://en.wikipedia.org/wiki/NASDAQ-100http://en.wikipedia.org/wiki/Black_Monday_(1987)http://en.wikipedia.org/wiki/Black_Monday_(1987)http://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Small_Order_Execution_Systemhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/National_Association_of_Securities_Dealershttp://en.wikipedia.org/wiki/Publicly_traded_companyhttp://en.wikipedia.org/wiki/Publicly_traded_companyhttp://en.wikipedia.org/wiki/The_NASDAQ_Stock_Markethttp://en.wikipedia.org/wiki/Philadelphia_Stock_Exchangehttp://en.wikipedia.org/wiki/United_States_Securities_and_Exchange_Commissionhttp://en.wikipedia.org/wiki/United_States_Securities_and_Exchange_Commissionhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/United_States_Securities_and_Exchange_Commissionhttp://en.wikipedia.org/wiki/United_States_Securities_and_Exchange_Commissionhttp://en.wikipedia.org/wiki/Philadelphia_Stock_Exchangehttp://en.wikipedia.org/wiki/The_NASDAQ_Stock_Markethttp://en.wikipedia.org/wiki/Publicly_traded_companyhttp://en.wikipedia.org/wiki/Publicly_traded_companyhttp://en.wikipedia.org/wiki/National_Association_of_Securities_Dealershttp://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Small_Order_Execution_Systemhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Black_Monday_(1987)http://en.wikipedia.org/wiki/Black_Monday_(1987)http://en.wikipedia.org/wiki/NASDAQ-100http://en.wikipedia.org/wiki/NASDAQ_Compositehttp://en.wikipedia.org/wiki/Standard_%26_Poor%27shttp://en.wikipedia.org/w/index.php?title=Stock_Guide&action=edit&redlink=1http://en.wikipedia.org/wiki/Over-the-counter_(finance)http://en.wikipedia.org/wiki/NASDAQ#cite_note-3http://en.wikipedia.org/wiki/Computer_bulletin_boardhttp://en.wikipedia.org/wiki/Computer_bulletin_boardhttp://en.wikipedia.org/wiki/Stock_exchangehttp://www.nasdaq.com/symbol/ndaqhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/NASDAQ_OMX_Grouphttp://en.wikipedia.org/wiki/Divestmenthttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authorityhttp://en.wikipedia.org/wiki/Financial_Industry_Regulatory_Authority


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In February, 2011, in the wake of an announced merger ofNYSEEuronext with Deutsche Brse, speculation developed that Nasdaqand IntercontinentalExchange (ICE) could mount a counter-bid of their own for NYSE.Nasdaq could be looking to acquire the American exchange's cash equities business, ICEthe derivativesbusiness. As of the time of the speculation, "NYSE Euronexts market

value was $9.75 billion. Nasdaq was valued at $5.78 billion, while ICE was valued at$9.45 billion." Late in the month, Nasdaq was reported to be considering asking eitherICE or theChicago Merc to join in what would probably have to be, if it proceeded, an$1112 billion counterbid

EASDAQ (European Association of Securities Dealers Automatic Quotation System)founded originally as a European equivalent to NASDAQ, it was purchased by NASDAQin 2001 and became NASDAQ Eur03, it shut down operations as a result of the burst ofthe dot-com bubble. In 2007, NASDAQ Europe was revived as Equiduct and is currentlyoperating underBrse Berlin.

Quote availability

NASDAQ quotes are available at three levels:

Level 1 shows the highest bid and lowest offerthe inside quote. Level 2 shows all public quotes ofmarket makers together with information of

market dealers wishing to sell or buy stock and recently executed orders.[8]

Level 3 is used by the market makers and allows them to enter their quotes andexecute orders.

Trading schedule

NASDAQ has a pre-market session from 7:00am to 9:30am, a normal trading sessionfrom 9:30am to 4:00pm and a post-market session from 4:00pm to 8:00pm .

Indices

NASDAQ-100 NASDAQ Bank NASDAQ Biotechnology Index NASDAQ Transportation Index NASDAQ Composite
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CHAPTER-4

LONDON STOCK EXCHANGE

The London Stock Exchange is a stock exchange located in the City of London in theUnited Kingdom. As of December 2011, the Exchange had a market capitalisation ofUS$3.266 trillion (short scale), making it the fourth-largest stock exchange in the worldby this measurement (and the largest in Europe). The Exchange was founded in 1801 andits current premises are situated in Paternoster Square close to St Paul's Cathedral in theCity of London. The Exchange is part of the London Stock Exchange Group.

Type Stock Exchange

Location London, England, United Kingdom

CoordinatesCoordinates:Click the blue globe to open aninteractive map.51.5150N 0.0990W

Founded 1801

Owner London Stock Exchange Group

Currency GBX

No. of listings 2,864 (as of December 2011)

MarketCap US$3.2 trillion (Dec 2011)

Volume US$1.7 trillion (Dec 2009)

Indexes FTSE 100 IndexFTSE 250 IndexFTSE 350 IndexFTSE SmallCap IndexFTSE All-Share Index

Website londonstockexchange.com
http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Geographic_coordinate_systemhttp://toolserver.org/~geohack/geohack.php?pagename=London_Stock_Exchange&params=51.5150_N_-0.0990_E_type:landmark_region:GB-LNDhttp://en.wikipedia.org/wiki/London_Stock_Exchange_Group_plchttp://en.wikipedia.org/wiki/London_Stock_Exchange_Group_plchttp://en.wikipedia.org/wiki/GBXhttp://en.wikipedia.org/wiki/GBXhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/London_Stock_Exchange#cite_note-0http://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/FTSE_250_Indexhttp://en.wikipedia.org/wiki/FTSE_350_Indexhttp://en.wikipedia.org/wiki/FTSE_SmallCap_Indexhttp://en.wikipedia.org/wiki/FTSE_All-Share_Indexhttp://www.londonstockexchange.com/http://www.londonstockexchange.com/http://www.londonstockexchange.com/http://en.wikipedia.org/wiki/FTSE_All-Share_Indexhttp://en.wikipedia.org/wiki/FTSE_SmallCap_Indexhttp://en.wikipedia.org/wiki/FTSE_350_Indexhttp://en.wikipedia.org/wiki/FTSE_250_Indexhttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/London_Stock_Exchange#cite_note-0http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/GBXhttp://en.wikipedia.org/wiki/London_Stock_Exchange_Group_plchttp://toolserver.org/~geohack/geohack.php?pagename=London_Stock_Exchange&params=51.5150_N_-0.0990_E_type:landmark_region:GB-LNDhttp://en.wikipedia.org/wiki/Geographic_coordinate_systemhttp://en.wikipedia.org/wiki/Stock_exchange


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History

Coffee House

The Royal Exchange had been founded by Thomas Gresham on the model ofthe Antwerp Bourse, as a stock exchange. It was opened by Elizabeth I in 1571.

During the 17th century, stockbrokers were not allowed in the Royal Exchange due totheir 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 Castingstarted listing the prices of a few commodities, exchange rates and certain key provisionssuch as salt, coal and paper in 1698. Originally, this was not a daily list and was onlypublished a few days of the week.

This list and activity was later moved to Garraways coffee house. Public auctions duringthis period were conducted for the duration that a length of tallow candle could burn;these were known as "by inch of candle" auctions. As stocks grew, with new companiesjoining to raise capital, the royal court also raised some monies. These are the earliest

evidence of organised trading in marketable securities in London.

Royal Exchange

After Gresham's Royal Exchange building was destroyed in the Great Fire of London, itwas rebuilt and re-established in 1669. This was a move away from coffee houses and astep towards the modern model of stock exchange.

The Royal Exchange not only housed brokers but also merchants and merchandise. Thiswas the birth of a regulated stock market, which had teething problems in the shape ofunlicensed brokers. In order to regulate these, Parliament brought out an act in 1697 thatlevied heavy penalties, both financial and physical to those brokering without a licence. Italso set a fixed number of brokers (at 100), which was later increased as the size of thetrade grew. This invariably led to several problems of its own, one of which was that thetraders had started leaving the Royal Exchange, either by their own virtues or throughexpulsion and had started dealing in the streets of London. The street in which they werenow dealing was known as Change or Exchange Alleywhich was suitably placed close tothe Bank of England. Parliament tried to regulate this and ban the unofficial traders fromthe Change streets.

Companies became weary of "bubbles" when companies rose quickly and fell, so theypersuaded Parliament to pass a clause preventing "unchartered" companies from forming.

After the Seven Years War(17561763), trade at Jonathan's coffee house boomed again.In 1773, Jonathan, together with 150 other brokers, formed a club and opened a new andmore formal "Stock Exchange" in Sweeting's Alley. This now had a set entrance fee,through which traders could enter the stock room and trade securities. It was, however,not an exclusive location for trading, as trading also occurred in the Rotunda of the Bankof England. Fraud was also rife during these times and in order to deter such dealings, itwas suggested that users of the stock room pay an increased fee. This was not met well
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and ultimately, the solution came in the form of annual fees and turning the Exchangeinto a Stock Subscription room.

The Subscription room created in 1801 was the first regulated exchange in London, butthe transformation was not welcomed by all parties. On the first day of trading, non-members had to be expelled by a constable. In spite of the disorder, a new and bigger

building was planned, at Capel Court.

William Hammond laid the first foundation stone for the new building on 18 May. It wasfinished on 30 December when "The Stock Exchange" was incised on the entrance.

First Rule Book

In the Exchange's first operating years, on several occasions there was a clear set ofregulations or fundamental laws missing for the Capel Court trading. In February 1812,the General Purpose Committee confirmed a set of recommendations, which later becamethe foundation of the first codified rule book of the Exchange. Even though the document

was not a complex one, topics as settlement and default were, in fact, quitecomprehensive.

With its new governmental commandments and increasing trading volume in place, theExchange was progressively becoming an accepted part of the financial life in the City.In spite of continuous criticism from newspapers and the public, the government used theExchange's organised market (and would most likely not have managed without) to raisethe enormous amount of money in the wars against Napoleon.

Foreign and regional exchanges

After the war and facing a booming world economy, foreign lending to countries such asBrazil, Peru and Chile were a growing market. Notably, the Foreign Market at theExchange allowed for merchants and traders to participate as well and The RoyalExchange hosted all transactions where foreign parties were involved. The ever-increasing of overseas business meant eventually the dealing in foreign securities had tobe allowed within all of the Exchange's premises.

Just as London enjoyed its international growth forthcoming, the domestic Great Britainalso benefited from the economic boom. Two other cities were particularly showing greatbusiness development, namely Liverpool and Manchester. Consequently, in 1836, boththe Manchester and Liverpool Stock Exchanges were opened. These were also timeswhen stockbroking was considered a real business profession and such attracted many

entrepreneurs. Nevertheless, with booms came busts, and in 1835 the Spanish panic hitthe markets, also followed by a second one two years later. Some stocks soared by some10, 20 and 30 pct, a week.


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The Exchange before the World Wars

By June 1853, both participating members and brokers were taking up so much space thatthe Exchange was now uncomfortably crowded and continual expansion plans weretaking place. Being already extended west, east and northwards, it was then decided theExchange needed an entire new establishment. Thomas Allason was appointed as the

main architect, and in March 1854 the new brick building inspired from the GreatExhibition stood ready. This was a huge improvement of both surroundings and space,with twice the floor space available.

By the late 1800s, the telephone, ticker tape and the telegraph had been invented. Thosenew technologies led to a revolution in the work of the Exchange.

First World War

Being the financial centre of the world, both the City and the Stock Exchange were hithard by the outbreak of the First World War in 1914. At first, prices surged due to a

rising fear that both borrowed money was to be called back and foreign banks woulddemand their loans or raise interest. The decision of closing the Exchange for improvedbreathing space and extension of the August Bank Holiday to prohibit a run on banks,was hurried through by the Committee and Parliament, respectively. The Stock Exchangeended up being closed from the end of July until the New Year, introducing again streetbusiness as well as on the challenge system.

The Exchange was set to open again on 4 January 1915 under tedious restrictions, astransactions were to be in cash only. Due to the limitations and challenges on tradingbrought by the war, almost a thousand members quit the Exchange between 1914 - 18.When peace time finally returned in November 1918, the post-war mood on the tradingfloor was generally cowed.

In 1923 the Exchange received its own Coat of Arms, with the motto Dictum MeumPactum, My Word is My Bond.

Second World War

In 1937, experiences from the First World War made officials at the Exchange draw upplans on how to handle a new war situation. One of the main concerns were air-raids andthe subsequent bombing of the Exchange's perimeters, and one suggestion was a moveto Denham. This however, never took place. On the first day of September 1939, theExchange closed its doors until further notice and two days later, the declaration ofwar

was signed. Unlike from the prior war, the Exchange opened its doors again six dayslater, on the 7th of September.

As the war escalated into its second year, the concerns for air raids were greater thanever. Eventually, on the night of 29 December 1940one of the greatest fires in Londonshistory took place. The Exchanges floor was hit by a clutch ofincendiary bombs, whichfortunately were extinguished quickly. Trading on the floor was now drastically low andmost was done over the phone to reduce the possibility of injuries.
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The Exchange was in fact only closed for only one more day during wartime, in 1945 dueto damage from a V-2 rocket, where trading continued in the houses basement.

Post-war

After some turbulent times, the stock market enjoyed some remarkable years in the late1950s and business was indeed booming. This pushed the officials to find a more suitablespace for its new accommodation. The work on the new Stock Exchange Towerbegan in1967. The Exchanges new 321 feet high house had 26 storeys with Council andAdministration at the top, and middle floors let out to affiliate companies. QueenElizabeth II opened the building on 8 November 1972, and the finalised building wasnow a new City landmark, with its 23,000 sq ft trading floor.

1973 marked the year of changes for the Stock Exchange. Firstly, two tradingprohibitions were to be abolished. A report from the Monopolies and MergersCommission recommended the admittance of both women and foreign-born members onthe floor. And secondly, in March the London Stock Exchange was to (formally)amalgamate with the 11 British and Irish regional exchanges. This expansion led to thecreation of a new position ofChief Executive Officer, who after extensive search, wasgiven to Robert Fell. Governmental changes also continued in 1991, when the governingCouncil of the Exchange was replaced with a Board of Directors drawn from theExchanges executive, customer and user base. This also marked the fi rst time the tradingname became 'The London Stock Exchange'.

FTSE 100 Index (Footsie 100) was launched by the Financial Times and Stock Exchangepartnership in February 1984. This turned out to be one of the most useful indices of alland tracked the movements of the 100 leading companies listed on the Exchange.

"Big Bang"

The biggest happening of the 1980s was the sudden deregulation of the financial marketsin the UK in 1986. The phrase Big Bang was coined to describe measures includingabolition of fixed commission charges and of the distinction between stockjobbers andstockbrokers on the London Stock Exchange, as well as change from an open-outcry toelectronic, screen-based trading.

In 1995 The Exchange launched the Alternative Investment Market, the AIM, to allowgrowing companies to expand to international markets. Two years later the ElectronicTrading Service (SETS) was launched, bringing greater speed and efficiency to themarket. Following this, the CREST settlement service was also launched.

On the year of the new millennium, 2000, the Exchange's shareholders voted to become apublic limited company: London Stock Exchange plc. The LSE also transferred its role asUK Listing Authority to the Financial Services Authority (FSA- UKLA)
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EDX London, a new international equity derivatives business, was created in 2003 inpartnership with OM Group. The Exchange also acquired Proquote Limited, a newgeneration supplier of real-time market data and trading systems.

The old Stock Exchange Tower became largely redundant with the advent of the BigBang, which deregulated many of the Stock Exchange's activities as it enabled an

increased use of computerised systems that allowed dealing rooms to take precedenceover face to face trading. Thus, in 2004, the House moved to a brand new headquartersin Paternoster Square, close to St Paul's Cathedral.

In 2007 The London Stock Exchange merged with Borsa Italiana, creating the LondonStock Exchange Group (LSEG). The Group operates out of the Stock Exchange'sheadquarters in Paternoster Square.

Activities

Primary markets

Issuer services help companies from around the world to join the London equity marketin order to gain access to capital. The LSE allows company to raise money, increase theirprofile and obtain a market valuation through a variety of routes, thus following the firmsthroughout the whole IPO process.

The London Stock Exchange runs several markets for listing, giving an opportunity fordifferent sized companies to list. International companies can list a number of products inLondon including shares, depositary receipts and debt, offering different and cost-effective ways to raise capital. In 2004 theExchange opened a Hong Kong Office andhas attracted more than 200 companies from the Asia-Pacific region.

For the biggest companies exists the Premium Listed Main Market. This operates a SuperEquivalence method where conditions of both the UK Listing Authority as well asLondon Stock Exchanges own criteria have to be met. The largest IPO (Initial PublicalOffering) on the Exchange was completed in May 2011 by Glencore Internationalplc.The company raised $10bn at admission, making it one of the largest IPO ever.

In terms of smaller SMEs the Stock Exchange operates the Alternative InvestmentMarket (AIM). For international companies that fall outside of the EU, it operates theDepository Receipt (DR) scheme as a way of listing and raising capital.

Amongst the benefits of joining one of the Exchanges markets are:

- Providing access to capital for growth and raise finance for further development- Both broadening the shareholder base and creating a market for the companys share

- Placing an objective market value on the companys business

There are also two specialised markets:

Professional Securities Market This market facilitates the raising of capital through theissue of specialist debt securities or depositary receipts (DRs) to professional investors.
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The market operates under the status as a Recognised Investment Exchange, and by July2011 it had 32 DRs, 108 Eurobonds and over 350 Medium Term Notes.

Specialist Fund Market Is the London Stock Exchange dedicated market, designed toaccept more sophisticated fund vehicles, governance models and security. It is suitableonly for institutional, professional and highly knowledgeable investors. The Specialist

Fund Market is an EU Regulated Market and thus securities admitted to the market areeligible for most investor mandates providing a pool of liquidity for issuers admitted tothe market

Secondary markets

The securities available for trading on the London Stock Exchange are:

Ordinary Shares Exchange-traded funds Exchange Traded Commodities Covered Warrants Structured Products Bonds Retail Bonds Global Depositary Receipts (GDRs)There are two main markets on which companies trade on the LSE:

Main Market

The home to some of the most well-established, largest and recognised companies in the

world. Over 1,300 companies from 60 different countries enjoy the balanced andglobally-respected standards of regulation and corporate governance that the LondonStock Exchange offers. Over the past 10 years over 366 billion has been raised throughnew and further issues by Main Market companies. The FTSE 100 Index (footsie) isthe main share index of the 100 most highly capitalised UK companies listed on the MainMarket.

Alternative Investment Market (AIM)

The London Stock Exchanges international market for smaller growing companies. Awide range of businesses including early stage, venture capitalbacked as well as moreestablished companies join AIM seeking access to growth capital. The AIM falls withinthe classification of a Multilateral Trading Facility (MTF) as defined underthe MiFID directive in 2004, and such is a flexible market with a simpler admissionprocess for companies wanting to be publicly listed.

There are also several electronic platforms on which the different products trade.

- SETS (Stock Exchange electronic Trading Service) SETS is the London StockExchanges flagship electronic order book, trading indexed securities (FTSE100,FTSE250, FTSE Small Cap Index constituents, Exchange Traded Funds, Exchange
http://en.wikipedia.org/wiki/Ordinary_Shareshttp://en.wikipedia.org/wiki/Exchange-traded_fundhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Alternative_Investment_Markethttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/MiFIDhttp://en.wikipedia.org/wiki/MiFIDhttp://en.wikipedia.org/wiki/Venture_capitalhttp://en.wikipedia.org/wiki/Alternative_Investment_Markethttp://en.wikipedia.org/wiki/FTSE_100_Indexhttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Exchange-traded_fundhttp://en.wikipedia.org/wiki/Ordinary_Shares


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Trading Products as well as other liquid AIM, Irish and London Standard listedsecurities)

- SETSqx (Stock Exchange electronic Trading Services quotes and crosses) SETSqx isa trading platform for securities less liquid than those traded on SETS. This platformcombines a periodic electronic auction book four times a day with standalone non-

electronic quote driven market making.

- SEAQ SEAQ is the London Stock Exchanges non-electronically executable quotationservice that allows market makers to quote prices in AIM securities and the Fixed Interestmarket.

International Trading Service

- IOB: The International Order Book offers easy and cost efficient access for traderslooking to invest in fast growing economies; for example, in Central and Eastern Europe,Asia and the Middle East via depositary receipts (DRs). It is based on an electronic orderbook similar to SETS.

- European Quoting Service: the European Quoting Service is a service that enablesclients to meet their pre-trade pan-European transparency obligations.

- A pan-European trade reporting service that enables clients to meet their post-tradereporting obligations whether trading on or off Exchange.

Derivatives

The trading of derivatives products is also available on the Turquoise platform (ex EDXLondon). The available products are Norwegian Futures and options on Norwegian singlestocks and indices, Russian futures and options on the most liquid IOB DepositaryReceipts, Futures and options on the FTSE RIOB index as well as futures on the FTSE

100. Futures and options on the most liquid European stock underlyings as well as onEuropean benchmark indices are expected to be launched in Q4 2011 and Q1 2012subject to FSA approval.
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CHAPTER-5

TOKYO STOCK EXCHANGE

The Tokyo Stock Exchangeor TSE for short, is a stock exchange located in Tokyo, Japan.It is the third largest stock exchange in the world by aggregate market capitalization of itslisted companies. It had 2,292 listed companies with a combined market capitalization ofUS$3.3 trillion as of December 2011.In July 2012 a planned merger with the Osaka Securities Exchange was approved by theJapan Fair Trade Commission. The resulting entity, the Japan Exchange Group , will belaunched on January 2013.

Type Stock exchange

Location Tokyo, Japan

Coordinates 354057.60N1394643.71E

Founded 1878

Owner Tokyo Stock Exchange Group, Inc.

Currency Japanese yen


MarketCap US$3.3 trillion (Dec 2011)

Volume US$3.9 trillion (Dec 2011)

Indexes Nikkei 225TOPIX

Website TSE.or.jp
http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://toolserver.org/~geohack/geohack.php?pagename=Tokyo_Stock_Exchange&params=35_40_57.60_N_139_46_43.71_E_type:landmarkhttp://toolserver.org/~geohack/geohack.php?pagename=Tokyo_Stock_Exchange&params=35_40_57.60_N_139_46_43.71_E_type:landmarkhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Japanese_yenhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Nikkei_225http://en.wikipedia.org/wiki/TOPIXhttp://www.tse.or.jp/english/http://www.tse.or.jp/english/http://www.tse.or.jp/english/http://en.wikipedia.org/wiki/TOPIXhttp://en.wikipedia.org/wiki/Nikkei_225http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Japanese_yenhttp://toolserver.org/~geohack/geohack.php?pagename=Tokyo_Stock_Exchange&params=35_40_57.60_N_139_46_43.71_E_type:landmarkhttp://en.wikipedia.org/wiki/Stock_exchange


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History

Prewar history

The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo KabushikiTorihikijo under the direction of then-Finance MinisterOkuma Shigenobu and capitalistadvocate Shibusawa Eiichi. Trading began on June 1, 1878.

In 1943, the exchange was combined with ten other stock exchanges in major Japanesecities to form a single Japanese Stock Exchange . The combined exchange was shut downand reorganized shortly after the bombing ofNagasaki.

Postwar history

The Tokyo Stock Exchange reopened under its current Japanese name on May 16, 1949,pursuant to the new Securities Exchange Act.

The TSE runup from 1983 to 1990 was unprecedented, in 1990 it accounted for over 60%of the world's stock market capitalization (by far the world's largest) before fallingprecipitously in value and rankings today, but still remains one of the 3 largest exchangesin the world by market capitalization of listed shares.

The current TSE building was opened on May 23, 1988, replacing the original TSEbuilding from 1931, and the trading floor of the TSE was closed on April 30, 1999, sothat the exchange could switch to electronic trading for all transactions. A new facility,called TSE Arrows , opened on May 9, 2000. In 2010, the TSE launched its Arrowheadtrading facility.

In 2001, the TSE restructured itself as a stock company: before this time, it wasstructured as an incorporated association with its members as shareholders.

The exchange was only able to operate for 90 minutes on November 1, 2005, due to bugswith a newly installed transactions system, developed byFujitsu, which was supposed tohelp cope with higher trading volumes. The interruption in trading was the worst in thehistory of the exchange. Trading was suspended for four-and-a-half hours.

During the initial public offering of advertising giant Dentsu, in December 2001, a traderat UBS Warburg, the Swiss investment bank, sent an order to sell 610,000 shares in thiscompany at 1 each, while he intended to sell 1 share at 610,000. The bank lost 71million.

During yet another initial public offering, that of J-Com, on December 8, 2005, anemployee at Mizuho Securities Co., Ltd. mistakenly typed an order to sell 600,000 sharesat 1, instead of an order to sell 1 share at 600,000. Mizuho failed to catch the error; theTokyo Stock Exchange initially blocked attempts to cancel the order, resulting in a netloss of US$347 million to be shared between the exchange and Mizuho. Both companiesare now trying to deal with their troubles: lack of error checking, lack of safeguards, lackof reliability, lack of transparency, lack of testing, loss of confidence, and loss of profits.On 11 December, the TSE acknowledged that its system was at fault in the Mizuho trade.On 21 December, Takuo Tsurushima, chief executive of the TSE, and two other seniorexecutives resigned over the Mizuho affair.
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On January 17, 2006, the Nikkei 225 fell 2.8%, its fastest drop in nine months, asinvestors sold stocks across the board in the wake of a raid by prosecutors on internetcompany livedoor. The Tokyo Stock Exchange closed early on January 18 due to thetrade volume threatening to exceed the exchange's computer system's capacity of 4.5million trades per day. This was called the "livedoor shock". The exchange quickly

increased its order capacity to five million trades a day.Hours

The exchange's normal trading sessions are from 09:00 a.m. to 11:30 a.m. and from 12:30p.m. to 3:00 p.m. on all days of the week except Saturdays, Sundays and holidaysdeclared by the Exchange in advance. The exchange is closed for the followingholidays: New Year's Day, Coming of Age Day, National Foundation Day, VernalEquinox Day,Shwa Day, Constitution Memorial Day, Greenery Day, Children'sDay, Marine Day, Respect for the Aged Day, Autumnal Equinox, Health and SportsDay, Culture Day, Labour Thanksgiving Day, and The Emperor's Birthday.

Alliances

The London Stock Exchange (LSE) and the TSE are developing jointly traded productsand share technology, marking the latest cross-border deal among bourses as internationalcompetition heats up. The TSE is also looking for some partners in Asia, and morespecifically is seeking an alliance with the Singapore Exchange (SGX), which isconsidered as becoming a leading financial hub in the Asia-Pacific region. Recently,some rumors close to the deal suggest that the TSE is preparing for a takeover of theSGX, or at least take a major stake, in the first semester of 2008. The TSE has alreadyacquired a 5% stake in the SGX as of June 2007, deemed to be only the beginning ofgreater participation.

In July 2008 the London Stock Exchange (LSE) and the TSE announced a new jointventure Tokyo-based market, which will be based on the LSE's Alternative InvestmentMarket (AIM).
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CHAPTER-6

EURONEXT

Euronext N.V. is a European electronic stock exchange based in Amsterdam,Netherlands, and with subsidiaries in Belgium, France, Netherlands, Portugal and theUnited Kingdom. In addition to equities and derivatives markets, the Euronext groupprovides clearing and information services. As of December 2010, markets run byEuronext had a market capitalization of US$2.93 trillion, making it the 5th largestexchange in the world. Euronext merged with NYSE Group, Inc. on April 4, 2007 toform NYSE Euronext (Euronext: NYX), the "first global stock exchange".

Type Stock exchange

Location Amsterdam, Netherlands

Founded September 22, 2000

Owner NYSE Euronext

Currency Euro


MarketCap US$ 2.93 trillion (Dec 2010)[2]

Volume US$ 1.9 trillion (Dec 2009)

Indexes Euronext 100AEX indexCAC 40

EURO Stoxx 50

Website Euronext.com
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History

Euronext was formed on 22 September 2000 following a merger of the Amsterdam StockExchange, Brussels Stock Exchange, and Paris Bourse, in order to take advantage of theharmonization of the European Union financial markets. In December 2001, Euronextacquired the shares of theLondon International Financial Futures and OptionsExchange (LIFFE), which continues to operate under its own governance. Beginning inearly 2003, all derivatives products traded on its affiliated exchanges trade onLIFFECONNECT, LIFFE's electronic trading platform. In 2002 the group merged withthe Portuguese stock exchange Bolsa de Valores de Lisboa e Porto (BVLP),renamed Euronext Lisbon. Hours of operation on non-holidays are 9:00-17:30 CET.

Structure and indices

Euronext has cross-membership and cross-access agreements with the Warsaw StockExchange for their cash and derivatives products, and with the Helsinki Exchanges oncash trading; ownership agreements are currently excluded. The Euronext Listencompasses all quoted companies. It has two segments; NextEconomy, consisting ofcompanies whose equities are traded continuously and are active in sectors such asinformation technology and biotechnology, and NextPrime, consisting of companies inmore traditional sectors that are traded continuously. Inclusion in the segments isvoluntary.

Euronext manages two broad-based indices. The Euronext 100 Index is the bluechip index. The Next 150 Index is a market capitalisation index of the 150 next largeststocks, representing the large- to mid-capitalisation segment of listed stocks at Euronext.The NextEconomy and NextPrime segments each have a price index and a total return

index, weighted by market capitalisation and excluding the shares listed in the Euronext100 Index. The indices have a base date of 31 December 2001, with a starting level of1000 points. Six NextWeather weather indices for France, launched in January 2002, areamong the sector indices planned by Euronext.

Exchange traded funds, called trackers, comprise Euronext's NextTrack product segment,and have been introduced on the AEX index, CAC 40, Euro Stoxx 50, and various pan-European regional and sector indices. Euronext has introduced several commodity futurescontracts, available to all constituents. Winefex Bordeaux futures are traded on EuronextParis. Euronext.liffe is the subsidiary of Euronext responsible for all options andfuturescontracts trading, formed by th

Documents

international stock exchanges