Primary equities market

London Stock Exchange

Although the London Stock Exchange celebrated its 200^th anniversary in 2001, its history dates back to 1760 when 150 brokers were kicked out the Royal Exchange for rowdiness and formed a club to buy and sell shares. However, it was not until 1801 that it became a regulated Exchange. Fast forward to 1986 and the Big Bang when ownership of member firms by an outside corporation was allowed and many other rules were changed to make the Exchange more competitive. In 2000, the LSE became a public limited company and was listed in 2001. The Exchange offers many services including electronic trading. Competition between European and British markets is intense — and there is just a hint of national considerations in recent events. The criteria for EMU membership specifically address the impact on the City. This was the only test that passed in the recently completed assessment.

Primary equity index

FTSE 100

The FTSE 100 Index is a capitalization-weighted index of the 100 most highly capitalized companies traded on the London Stock Exchange. The index was developed with a base level of 1000 as of January 3, 1984.

The FTSE along with all other major indexes sank in November. The index lost 4.3 percent in the month as equities continued to be extremely volatile. The FTSE has only gained 3.4 percent since the end of 2006.