London Stock Exchange

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A Written Report on London Stock Exchange
FINANCIAL MARKETS
AE 18
BS in Accountancy 2 -A
Group 1
Arrabis, Shannen B.
Burlaza, Irene F.
Cortez, Catherine Joyce
Piorato, Marrian Kaye C.
Dr. Benjie Bunyi
November 30, 2020

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Table of Contents
History ............................................................................................................................. 3
Company Profile.............................................................................................................. 6
Top 20 Listed Companies ............................................................................................... 7
List of Accredited Brokers/Advisers ............................................................................... 18
List of Securities Traded................................................................................................ 20
Trading Process, Methods and Techniques .................................................................. 22
Current Status of London Stock Exchange during COVID-19 ....................................... 33
Bibliography .................................................................................................................. 36
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History
 1698 - Jonathan’s Coffee House

John Castaing publishes a list of currency, stock and commodity prices at Jonathan’s
Coffee House. It includes prices for gold, ducats, silver staters and pieces of eight.
 1773 - The move to Sweeting’s Alley
A more formal club known as ‘New Jonathan’s’ or ‘The Stock Exchange’ opens in
Sweeting’s Alley. The building had a frontage of about 35 feet with a dealing room on
the ground floor and a coffee room on the first. The occupation of the new building
was the earliest manifestation of a formalized, though not yet regulated, stock
exchange.
 1802 - A neat, plain building
A new venue is built at Capel Court, next to the popular Mendoza’s Boxing Room. A
gallery ran round around the main hall, equipped with desks and bookcases, any
member requiring a book would call up to a clerk to throw it down.
 1812 - Playing by the rules
The ‘First Rule Book’ is published, covering issues from trade settlement to defaults.
Setting off fireworks, and footballs, is forbidden at the exchange.
 1840 - Telegraph revolution
The telegraph machine is adopted by the Exchange, and by 1866 prices on the floor
of the New York Exchange are available in London 20 minutes later, instead of 16
days.
 1872 - Ticker tape to telephone
The introduction of the ticker tape machine allows price information to be transmitted
almost instantly. It is followed in 1880 by the telephone.
 1914 - Aiding the war effort
The Exchange plays a crucial role in the liquidation of almost a quarter of British
overseas securities in order to finance the First World War.
 1923 - A new motto
The Exchange receives its coat of arms from the College of Arms, along with the motto
Dictum Meum Pactum – ‘My Word is My Bond’.
 1945 - Rocket strike
Although the Exchange suffers repeated damage during the Second World War it
remains open except for one day in 1945, when a V2 rocket makes a direct hit.
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 1970 - Real-time prices

The Market Price Display System is introduced, giving brokers access to the real-time
prices of more than 700 leading securities.
 1972 - Stock Exchange Tower
The Exchange moves to 125 Old Broad Street where, in contrast to the old building,
Stock Exchange Tower stands 100m tall with 26 floors.
 1984 - The £4bn listing
The UK government floats 50.2% of British Telecom for £4 billion, creating the largest
company listed on London Stock Exchange.
 1984 - FTSE 100 is launched
In partnership with the Financial Times, a real-time index of the 100 biggest
companies by market capitalization is launched – the Financial Times Stock Exchange
100 Index, or FTSE 100.
1986 - ‘Big Bang’ in the City
The market is deregulated in what becomes known as ‘the ‘Big Bang’ with
computerized trading replacing the old pit-style trading floor, leading to a huge
increase in trading activity.
 1995 - AIM is launched
The Alternative Investment Market (AIM) launches, giving smaller growth companies
access to investor capital. Initially, 10 companies are quoted.
 1997 - Automatic trade matching
A three-year project leads to trading, settlement and information systems being
replaced by Stock Exchange Electronic Trading Services (SETS); trade orders are
now matched automatically.
 2004 - Our new home
London Stock Exchange moves to its current headquarters at 10 Paternoster Square,
near St Paul’s Cathedral.
 2007 - Borsa Italiana
London Stock Exchange merges with Italian Stock Exchange Borsa Italiana, creating
London Stock Exchange Group.
 2015 - Green Bond Segments
One of the first exchanges globally to launch dedicated segments for green bond
issuers, since then we have welcomed landmark green bonds from around the world.
 2017 - International Securities Market (ISM)

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The ISM is launched to provide fixed income issuers with an efficient and direct
customer-centric admission process. ISM achieved great success with its 100th bond
after just two years and continues to attract corporates, sovereigns and financial
institutions from around the world.
 2018 - Issuer Services
London Stock Exchange launches new digital hub for its where their benefits of being
part of our listed community are maximized by the access to unique solutions.
 2019 - Shanghai-London Stock Connect
This pioneering partnership and fungible cross-listing mechanism between our two
exchanges enables London-listed corporates to issue CDRs in Shanghai & Shanghai-
listed corporates to issue GDRs in London.
 2019 - Sustainable finance initiatives
The Green Economy Mark launched recognizing listed companies with 50% or more
of revenues from environmental solutions, while the Sustainable Bond Market (SBM)
incorporates new Sustainability, Social and Issuer-Level Segments.
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Company Profile
London Stock Exchange Group (LSEG) is an international markets infrastructure

business. Its diversified global business focuses on capital formation, intellectual property
and risk and balance sheet management. LSEG operates an open access model, offering
choice and partnership to customers across all of its businesses. The Group can trace its
history back to 1698.
The Group operates a broad range of international equity, ETF, bond and
derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (a European
fixed income market); and Turquoise (a pan-European equities MTF). Through its
platforms, LSEG offers market participants, unrivalled access to Europe's capital markets.
The Group also plays a vital economic and social role, enabling companies, including
SMEs, to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing,
benchmarking and analytic services with approximately $15 trillion benchmarked to its
indexes. The Group also provides customers with an extensive range of data services,
research and analytics through The Yield Book, Mergent, SEDOL, UnaVista, XTF and
RNS.
Post trade and risk management services are a significant part of the Group's
business operations. In addition to majority ownership of LCH, a multi-asset global CCP
operator, LSEG owns CC&G, the Italian clearing house and Monte Titoli, a leading
European custody and settlement business.
LSEG Technology develops and operates high performance technology solutions,
including trading, market surveillance and post trade systems for over 40 organizations
and exchanges, including the Group's own markets.
Headquartered in the United Kingdom, with significant operations in North
America, Italy, France and Sri Lanka, the Group employs approximately 4,500 people.
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Top 20 Listed Companies
London Stock Exchange website reviews and updates their list for Financial Times
Stock Exchange 100 (FTSE 100) every quarter. It comprises the top 100 companies.
Below only includes the Top 20 companies based on their market capitalization or the
overall value of a company’s outstanding share. The list contains code, market
capitalization as well as price of each stock, the sector, industry, logo and brief information
in regards to the company.
1. AstraZeneca
Code: AZN
Market cap (m) €101,677.48
Price: €7,770.00
Sector: Healthcare
Industry: Pharmaceuticals
Information: AstraZeneca PLC is an Anglo–Swedish multinational pharmaceutical
and biopharmaceutical company. AstraZeneca develops, manufactures, and sells
pharmaceuticals and biotechnology products to treat major disease areas including
cancer, cardiovascular, gastrointestinal, infection, neuroscience, respiratory, and
inflammation.
2. HSBC Holdings PLC

Code: HSBA
Market cap (m) €81,032.46
Price: €404.85
Sector: Financials
Industry: Diversified Banks

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Information: HSBC Holdings PLC is a multinational banking and financial
services company, dual-listed both in London and Hong Kong. Founded in Hong Kong
and Shanghai in 1865, HSBC has grown to operate in more than 60 countries, with
operations in commercial banking, investment banking, retail banking and wealth
management, and global private banking.
3. GlaxoSmithKline
Code: GSK
Price: €1,383.60
Sector: Healthcare
Industry: Pharmaceuticals
Information: GlaxoSmithKline PLC, better known as GSK, is a pharmaceutical
company. GSK manufactures products for major disease areas such as asthma,
cancer, infections, diabetes, and mental health, and it has a portfolio of vaccines.
Operating in more than 115 countries, GSK is also engaged in the consumer
healthcare business in oral health, pain relief, respiratory, nutrition/gastro-intestinal,
and skin health categories.
4. Diageo
Code: DGE
Price: €2,933.00
Sector: Consumer Defensive

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Industry: Beverages, Wineries & Distilleries
Information: Diageo PLC is a multinational alcoholic beverages company.
Notably the world’s largest producer of whiskey, Diageo is involved in the production
and distribution of multiple spirits and beers, with some of the world’s most famous
brands including Guinness, Johnnie Walker, Smirnoff and Gordon’s.
5. British American Tobacco

Code: BATS
Price: €2,677.00
Industry: Tobacco
Information: British American Tobacco PLC, also known as BAT, is a
multinational cigarette and tobacco manufacturing company. Formed in 1902, BAT is
now the world’s second-largest tobacco producer with multiple international brands
such as Lucky Strike, Dunhill, Pall Mall, Rothmans International, Winfield, and a large
array of local brands.
6. Rio Tinto
Code: RIO
Price: €4,922.50
Sector: Industrials
Industry: Industrial Metals & Mining

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Information: Founded in 1873, Rio Tinto has evolved to become a leader in the
extraction of minerals, especially aluminum, iron ore, copper, uranium, and diamonds,
and developed operations in refining, particularly for bauxite and iron ore. With a global
presence, Rio Tinto is primarily operating in Australia and Canada.
7. Royal Dutch Shell

Code: RDSA
RDSB

€48,135.92
Price: €1,339.40
€1,304.00
Sector: Energy
Industry: Oil & Gas
Information: Royal Dutch Shell PLC, simply known as Shell, is a British-Dutch oil and
gas company. Founded in 1907, headquartered in the Netherlands and incorporated
in the UK, Shell is now present in more than 70 countries. It operates in oil and gas in
exploration and production, refining, transport, distribution and marketing,
petrochemicals, power generation, and trading, and is also engaged in renewable
energies with biofuels, wind, and hydrogen.
8. Unilever
Code: ULVR
Price: €4,586.00

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Industry: Household & Personal Products
Information: Unilever is a British-Dutch multinational consumer goods company dual-
listed in the United Kingdom and the Netherlands. Formed from companies founded in
the 1870s, Unilever now regroups more than 400 brands, including Axe/Lynx, Dove,
Omo, Heartbrand ice creams, Hellmann’s, Knorr, Lipton, Lux, Magnum,
Rexona/Degree, Sunsilk, and Surf.
9. BP
Code: BP
Price: €262.90
Sector: Energy
Industry: Oil & Gas
Information: BP PLC, formerly The British Petroleum Company and BP Amoco, is a
multinational oil and gas company. Founded in 1909, BP operates in oil and gas
through exploration and production, refining, distribution and marketing,
petrochemicals, power generation, and trading, and also has interests in renewable
energy with biofuels and wind power.
10. Reckitt Benckiser

Code: RB
Price: €6,516.00

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Industry: Household & Personal Products
Information: Reckitt Benckiser Group PLC, also known as RB, is a multinational
consumer goods company, producing health, hygiene and home products. Tracing its
origins back to the 19th century, RB has grown to a global company with famous brand
names including Dettol, Strepsils, Veet, Airborne, Gaviscon, Mead Johnson, Air Wick,
Calgon, Clearasil, Cillit Bang, Durex, Lysol, Mycil and Vanish.
11. BHP
Code: BHP
Price: €1,737.80
Sector: Industrials
Information: BHP Group PLC is the British arm of the Anglo-Australian multinational
mining, metals, and petroleum corporation that is also listed on the Australian Stock
Exchange and a top constituent of the ASX index. BHP is involved in the exploration,
production, and processing of minerals, especially coal, iron ore, copper and
manganese ore, and the exploration, production, and refining of hydrocarbons.
12. Vodafone
Code: VOD
Price: €124.90
Sector: Communication Services

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Industry: Telecom Services
Information: Vodafone Group PLC is a multinational telecommunications
conglomerate. Engaged predominantly in mobile connectivity services, Vodafone owns
and operates networks in 25 countries, and has partner networks in 47 further
countries. Its enterprise services division provides telecommunications and IT services
to corporate clients in 150 countries.
13. RELX Group

Code: REL
Price: €1,742.00
Sector: Communication Services
Industry: Publishing
Information: RELX PLC, also known as RELX Group, is a multinational information
and analytics company. RELX Group is engaged in four business segments: scientific,
technical, and medical, under the Elsevier brand, risk, and business analytics, under
the LexisNexis Risk Solutions and Reed Business Information brands, legal, under the
LexisNexis brand, and exhibitions, under the Reed Exhibitions brand.
14. Prudential
Code: PRU
Price: €1,212.00
Sector: Financials
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Industry: Life Insurance
Information: Prudential PLC is a multinational life insurance and financial services
company. Founded in 1848, it has grown become a leading insurance and asset
management provider in Asia with Prudential Corporation Asia, one of the largest life
insurance providers in the United States with Jackson National Life Insurance
Company, and a leading savings and investments business in the UK and Europe with
M&G Prudential.
15. National Grid

Code: NG
Price: €873.80
Sector: Utilities
Industry: Diversified Utilities
Information: National Grid PLC is a multinational electricity and gas utility company. It
primarily operates in electricity transmission and gas distribution in the United Kingdom
and the United States, managing operations directly or through subsidiary companies.
16. Anglo American

Code: AAL
Price: €2,265.50
Sector: Industrials
Industry: Industrial Metals & Minerals

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Information: Anglo American PLC is a mining company based in South Africa and the
United Kingdom. Founded in 1917, Anglo American is the world’s largest producer of
platinum, and a major producer of diamonds, copper, nickel, iron ore, and metallurgical
and thermal coal.
17. Glencore
Code: GLEN
Price: €213.55
Sector: Industrials
Information: Glencore PLC is an Anglo-Swiss multinational commodity trading and
mining company. Glencore is operating mining and metallurgical sites, oil production
assets, agricultural facilities, and it is engaged in the sourcing and distribution of its
commodities throughout the world.
18. London Stock Exchange

Code: LSE
Price: €7,920.00
Sector: Financials
Industry: Financial Data & Stock Exchanges
Information: The London Stock Exchange Group is a stock exchange and financial
information company. Founded in 1801, it operates the main stock exchange of the
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United Kingdom, and the Italian stock exchange, Borsa Italiana. It is also involved
information technology through its Sri Lankan subsidiary MillenniumIT, and operates
the stock indexes Russell Indexes and FTSE International, and has majority stakes in
the clearinghouse LCH and electronic fixed income trading market MTS.
19. Lloyds Banking Group

Code: LLOY
Price: €37.30
Sector: Financials
Industry: Regional Banks
Information: Lloyds Bank PLC is a retail and commercial bank. Evolved from the Bank
of Scotland founded in 1695, Lloyds Banking Group has developed its activities
primarily in England and Wales in retail banking, commercial banking, life, pensions
and insurance, wealth management, and international operations in the U.S., Europe,
the Middle East, and Asia.
20. Compass Group

Code: CPG
Price: €37.30
Sector: Consumer Cyclical
Industry: Restaurants
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Information: LCompass Group PLC is a multinational contract foodservice company.
The largest contract foodservice company in the world, providing food and support
services in more than 50 countries across five market sectors: business and industry,
healthcare and seniors, education, sports and leisure, defense, offshore and remote.
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List of Accredited Brokers/Advisers
1 A J Bell Securities Limited

2 Alexander David Securities Limited
3 Arbuthnot Latham & Co. Limited
4 Arnold Stansby & Co Limited
5 Barratt & Cooke
6 Blankstone Sington Limited
7 Brewin Dolphin Limited
8 Capital International Limited
9 Cardale Asset Management Limited

10 Castlefield Investment Partners LLP
11 Cave & Sons Limited
12 Charles Stanley & Company Limited
13 Credo Capital Limited
14 Dowgate Capital Limited
15 EFG Private Bank Limited

16 Equiniti Financial Services Limited
17 Farley & Thompson LLP
18 FinecoBank S.p.A.
19 First Equity Limited
20 Fiske plc
21 Freetrade Limited
22 GHC Capital Markets Limited
23 Halifax Share Dealing Limited

24 Hargreaves Lansdown Asset Management Limited
25 Hedley & Company Stockbrokers Limited
26 Hubwise Securities Limited
27 IDealing.com Limited
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28 Interactive Brokers (UK) Limited

29 Interactive Investor Services Limited
30 Investec Wealth & Investment (Channel Islands) Limited
31 Investec Wealth & Investment Limited
32 J.M. Finn & Co.Ltd
33 James Brearley & Sons Limited
34 James Sharp & Co LLP
35 Jarvis Investment Management Limited
36 Killik & Co LLP
37 M D Barnard & Co Ltd
38 Pilling & Co Stockbrokers Ltd
39 Quilter Cheviot Ltd
40 Ramsey Crookall & Co Limited

41 Ravenscroft (CI) Limited
42 Raymond James Financial International Limited
43 Raymond James Investment Services Limited
44 Rowan Dartington & Co Limited
45 Russell Wood Limited
46 Seven Investment Management LLP
47 Smith & Williamson Investment Services Limited
48 The Share Centre Limited
49 Thomas Grant & Company Ltd
50 Tilney Investment Management
51 W+A1:C51alker Crips Investment Management Limited

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List of Securities Traded
Trading on London Stock Exchange means unrivalled access to UK, European and
Global Capital Markets
London Stock Exchange operates a broad range of international equity, ETP and
bond markets. Through its platforms, London Stock Exchange offers market participants,
including retail investors, institutions and SMEs, access to Europe’s global capital
markets. London Stock Exchange trading services are designed to maximize liquidity for
all participants and include fully electronic order-driven services for liquid UK securities
and international Global Depositary Receipts, and quote-driven market maker services
for less liquid securities. With a single connection to London Stock Exchange, investors
can access securities from over 100 countries, including developed and emerging
markets.
Securities Trading
1. Equity Trading
 Global investor base - Access a deep pool of international capital
 Convenient trading hours - European trading hours sit between US and Asia
trading hours
 International issuers - 30% of the world’s foreign equities are traded in
London
 Innovative trading products - From RFQ to auctions, access a diverse range
of products
2. Debt Trading
 The largest capital pools worldwide - 13000+ tradeable securities
 Orderbooks for fixed income trading - Electronic order books offering a
flexible model through continuous market maker quoting or end-of-day
pricing
 Wide range of issuer services - London Stock Exchange offers a range of
issuer services to provide greater visibility of trades conducted bilaterally
 Exceptional trading capabilities - Over 50+ Market Makers in debt securities
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3. ETP (Exchange Traded Product) Trading

 Market Leader in ETPs - Voted “Best European Exchange for Listing ETFs”
at the ETF Express European Awards 2020 (10th Anniversary)
 Premier ETP listing and trading venue in Europe - The first ETF (Exchange
Traded Fund) was listed on the London Stock Exchange in 2000
 Leading through innovation - LSEplc was the first exchange to introduce a
dedicated ETC segment in 2006
 Reach a global investor base - Member firms from more than 20 countries
are connected to LSEplc's (London Stock Exchange Public Limited
Company) order book and have access to trade ETFs
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Trading Process, Methods and Techniques
EQUITY TRADING PROCESS
Choose a Choose Prepare Market to Launch and

Market Adviser Application Investors Beyond
Equity Trading Process
1. Choose a Market
 (AIM) Alternative Investment Market: the world’s most successful growth market.
 Main Market High Growth Segment: specifically designed for mid-sized, high-growth
UK and European companies.
 Main Market Standard Segment: part of the Financial Conduct Authority’s (FCA)
Official List; companies are subject to core European standards.
 Main Market Premium Segment: part of the FCA’s Official List and subject to the
highest standards of corporate governance, providing eligible companies with
inclusion in the FTSE UK Index Series
 You can also decide which type of transaction will suit your needs best.
Choose from:
 Initial Public Offering (IPO)
This gives your company an opportunity to raise the widest range of capital by
issuing new shares or to selling existing shares to new investors.
 Direct Listing
In a direct listing (also known as an introduction), a company joins our markets
without raising any capital. Typically, this may suit companies which have
already raised capital through other means and have a diverse set of investors
on their shareholder register.
2. Choose Advisers
 Selecting the right external team is one of the most important steps in taking your
company public. You will need to appoint a team of advisers to support your IPO,
usually including: legal counsel, accountant, investment bank and any specialist
sector advisers. Consulting your existing advisers, usually accountants and lawyers,
is a good starting point.
 Many companies hold a ‘beauty parade’ of specialists to determine which ones have
the appropriate experience and understanding of their business model. You should
determine a realistic timetable with your advisers, and agree roles and responsibilities.
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 When appointing advisers you should also clarify areas of responsibility in advance
and negotiate costs.
3. Prepare Application
 All our markets have different levels of regulation with their own respective application
processes to formally admit your company. You will need to apply to the regulator to
raise capital (for example, for a listing on the Main Market, this will be the FCA and for
other markets such as AIM the regulatory function is carried out by London Stock
Exchange) and to London Stock Exchange to be admitted to trading. Your advisers
will guide you through this process.
 Appointing an appropriate adviser is essential in ensuring you meet all the market
entry requirements. They can also help you to prepare an application, ensuring you
produce the relevant admission documents.
4. Market to Investors
 Your corporate broker will work with you to actively market your company to potential
investors. They will assist the management team in preparing for a series of investor
presentations as part of a formal roadshow. You may want to appoint a broker with
experience of your industry, capable of stimulating investor interest both at the point
of IPO and in the after-market, to enhance liquidity in your shares and maintain your
company’s profile.
5. Launch and Beyond

 It is common to see a lot of trading activity on a stock’s first day on a public market
and your corporate broker is permitted to conduct an over-allotment of shares at IPO,
and then purchase shares in the open market if the price needs to be stabilized.
Trading volume will settle towards a steady state in the weeks after the IPO, but your
corporate broker will remain an important adviser beyond that process.
 Your corporate broker will continue to work with you on your engagement with the
market; for example, corporate transactions, capital structure and dividend policy and
supporting you at key investor events as part of a wider investor relations (IR) strategy.
 For most companies, life on the public market can be a significant development.
Publishing an annual report and disclosing material, price-sensitive information to the
market are two key continuing obligations for all London Stock Exchange-listed
companies.
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DEBT TRADING PROCESS
Choose a Choose Prepare Listing and Post-Listing

Market Adviser Application Admission Reporting
Debt Trading Process
1. Choose a Market
 Main Market (MM) - The UK's principal regulated market for bond issuance and a
globally recognised listing venue for domestic and foreign issuers, including a number
of sovereigns. Bonds admitted to trading on the MM are also admitted to the UK Listing
Authority’s Official List.
 International Securities Market (ISM) - The ISM is an exchange-regulated market
providing an efficient and transparent listing process with rapid turnaround times. The
dedicated and knowledgeable debt specialist team are able to offer competitive
turnaround times to accommodate issuer priorities. As an exchange-regulated market,
the UK Listing Rules and the Prospectus Regulation are not applicable to ISM; issuers
must comply with the requirements set out in the ISM Rulebook.
2. Choose Advisers
 Getting the selection of your external team right is one of the most important steps in
raising financing in the public capital markets. In the first instance, you will need to
appoint legal counsel and underwriting banks. A good starting point is to consult your
existing advisers.
 Many companies hold a ‘beauty parade’ of specialists to determine who has the
appropriate experience and understanding of your business model. You should agree
a realistic timetable with your advisers, agreeing who is responsible for each aspect
of the work.
 When appointing advisers you should also clarify areas of responsibility in advance
and negotiate costs.
3. Prepare an Application
 Listing debt on LSEG involves preparing either admission or listing particulars, or a
prospectus compliant with the appropriate rules.
 As part of the prospectus issuers will need to provide, among other things, detailed
financial statements as well as the terms and conditions relating to the security and
information on recent developments.
 Appointing an experienced team of professionals helps deliver a complete listing
document. It is not mandatory for issuers to seek specialist services before lodging an
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application, but we recommend appointing an experienced legal advisor to guide you

when drawing up a prospectus.
4. Listing and Admission to Trading

 Different markets have different levels of regulation, which in turn require different
application processes. Companies need to apply to the regulator to raise capital (in
some cases this will be the FCA and in other cases the regulatory function is carried
out by LSEG) and to London Stock Exchange to be admitted to trading. Your advisers
will guide you through this process.
 Using an appropriate adviser is essential in ensuring you meet all the listing
requirements. They can also help you prepare an application, ensuring you complete
the relevant forms, documents and prospectus.
 Which market you choose determines the route of submission.
5. Post-listing Reporting
 Life on the public market can be very different from previous practice for most
companies. For instance, publishing an annual report and disclosing material
information to the market are two key continuing obligations for all London Stock
Exchange-listed companies.
 Following admission to a public market, companies are subject to a range of
disciplines and requirements. These can be broadly divided between the legal and
regulatory requirements, representing the continuing obligations that all quoted
companies must meet; and market-driven disciplines and activities, which are not
compulsory, but which are advisable and even necessary in order to gain the
maximum benefit from your listing.
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ETP TRADING Process
Obtain FCA Submit Obtain Start of Trading

Choose a Route
authorization or Application to Approval from on the Main
to Market
recognition LSE LSE Market
ETP Trading Process
1. Choose your Route to Market

 Apply to the UKLA for a London listing and to London Stock Exchange for admission
to trading on the Main Market
 Apply to LSEG for admission to trading on the Main Market based on an existing EEA
listing utilizing a recognized scheme.
2. Obtain either FCA authorization or recognition

FCA authorization for admission
 Taking this route requires the fund to be an authorized collective investment
scheme with the legal form of an authorized unit trust scheme (AUT), an
investment company with variable capital (ICVC) or an authorized contractual
scheme (ACS). The authorized collective investment scheme must be established
in the UK and utilize the Undertakings for Collective Investment in Transferable
Securities (UCITS) scheme.
FCA recognition for admission
 For this route the fund must be complaint with one of the FCA-recognized schemes
ie schemes established outside the UK that can be promoted to the general public
in the UK. UCITS schemes are marketable in the UK under section 264 of FSMA
(schemes constituted in other EEA states).
 Both routes to market utilize the UCITS scheme, thereby benefiting from the
principle of mutual recognition within the EU and a high level of acceptance by
regulators worldwide.
 The review for UCITS compliance and obtaining recognition status are conducted
in one submission by the FCA Collective Investment Scheme Department.
 The fund will have to provide, among others, the following documents:
o A certificate of UCITS compliance from the home regulator
o A copy of the fund prospectus
o A recognition application form (acquired from the FCA)
o Details of the fund, i.e. registered office address, marketing plan etc.
 Prospective fund issuers are advised to seek their own advice on admitting
investment funds in to the UK.
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3. Submit Application to London Stock Exchange

The application for admission to LSEplc can be administered by the fund’s sponsor or
directly by the issuer. It is necessary to arrange for the creation of the relevant trading
codes (i.e. once it has been determined what funds are to admit) as soon as possible
in the admission process.
ISIN/SEDOL – International securities identification numbers (ISINs) are normally
allocated by the country of domicile of the issuer. LSEplc is then responsible for
allocating a stock exchange daily official list (SEDOL) code, which is a unique
instrument identifier. Please email the pricing supplement(s) to this email address
and allow 48 hours for these to be assigned.
TIDM – A tradable instrument display mnemonic (TIDM) is the three- or four-character
identifier specific to London Stock Exchange. Issuers may request a specific TIDM,
which will be issued provided it is not already in use or reserved. Once reserved, these
are held for a period of six months. Requests should be made to the Market Admission
and Data Management team, who manage new admissions to London Stock
Exchange. Please email the issuer name and the description of each line
(multicurrency lines require unique TIDMs), making it clear that it is a TIDM request,
mail to: admissions@lseg.com
4. Obtain Approval from London Stock Exchange

In order to admit an ETF to trading the following documentation will be required.
 For all funds:
 Form 1 (draft)
 Static data form
 Certificate of UCITS compliance from the home CA or other FCA-recognized, non-
UCITS scheme
 Prospectus/pricing supplement.
 For funds admitting on the basis of an EEA listing utilizing UCITS scheme:
 Stamped listing particulars from an EEA CA
 Evidence of FCA recognition status.
The above are required from the issuer five business days (12.00pm deadline)
before admission. * Number of days given are for sub-funds only. Parent funds still require the full 11 business
days.
For all funds:

 Form 1 (final, signed).
For UKLA listed funds:
 Listing particulars.
The above are required from the issuer three business days (12.00pm deadline)
before admission.
28
5. Start of Trading on the Main Market

Market Maker Registration
For a Market Maker to register in the security they must complete and send in a
Registration Information Form (RIF) before 5.30pm the day prior to listing,
although we strongly suggest this is sent in earlier if possible to account for any
corrections to the form that may be needed.
Exchange Membership
 The fund and fund manager are not obliged to be members of London Stock
Exchange, though the Fund Manager would have to be authorized by the FCA
in order to conduct investment business (this is a separate process to that of
obtaining fund approval, outlined above). Membership of London Stock
Exchange would allow access to all Exchange markets, not just ETFs. If fund
agents or prospective market intermediaries want to become a member, they
should: — have an initial meeting with the Exchange’s Membership team to
discuss their prospective requirements — complete an application form and
submit to the Exchange together with associated documentation — work with
the Membership team to ensure appropriate trading and settlement links. An
application form for membership is available on the London Stock
Exchange. Market participants acting as Exchange Market Makers, trading,
creating and redeeming ETF shares would have to be members of London
Stock Exchange.
Trading Environment for Exchange Traded Funds

 The market for ETFs operates in an order-driven environment on SETS with
integrated Market Maker liquidity provision, delivering guaranteed two-way
prices. Market Makers must provide continuous bid-offer orders throughout the
trading day in a minimum size and maximum spread regime. It is the
responsibility of the issuer to arrange at least one registered Market Maker per
security, however to ensure competitive pricing and protection from any
individual member firm’s system issues issuers are advised to engage at least
two Market Makers to register in each ETF. The order book provides
continuous execution from after the open auction (which takes place from
7.50am to 8.00am) until the start of the closing auction at 4.30pm on all London
business days. Participants are able to use both limit and unpriced orders
during continuous trading. The closing auction runs from 4.30pm until at least
4.35pm and allows users to participate and trade at the single closing price,
generated at the level that would provide the greatest uncrossing volume. The
exact uncrossing time is dependent on random end times and price monitoring
periods. Market Makers are required to maintain quotes until the completion of
29
the closing auction to ensure that an appropriate closing price is set. This
includes the random end period and any price monitoring extensions. The latest
possible time of uncrossing is 4.49pm. If no closing auction occurs the closing
price will be the mid-price of the best bid/offer at the end of the closing auction.
The following link provides details of Market Maker obligations for ETFs on
London Stock Exchange: Real-time market surveillance is provided throughout
the trading day. ETFs are treated as ordinary equity in the Exchange rulebook,
except with regard to the creation and redemption of ETF shares.
ETFs can help in a range of investment strategies:

 Rebalance portfolios and steer investment strategy quickly and easily
The flexibility that ETFs offer means that asset allocation decisions can be
executed instantaneously and cheaply. An investor can achieve broad exposure
to equity, bonds, the US or Europe very easily. Subsequent rebalancing can take
place with just a couple of trades. ETFs also allow even the smallest portfolios to
achieve broad diversification.
 Core / satellite approach
No investor or even investment professionals can follow every instrument in every
market. ETFs allow investors to build a core market portfolio while concentrating
on those instruments they follow closely and add their stock picks for additional out
performance. In this way, passive (tracker) funds can form part of a very successful
active strategy.
 Tactical investing in the short term
Sometimes markets move very fast indeed and the ability to pick up the phone,
receive a real time price and trade there and then can make all the difference.
Unlike unit trusts, where you may not be able to deal for 24 hours and will not find
out the price until afterwards, ETFs allow you to both take advantage and avoid
the pitfalls of fast markets.
 Strategy
We recognize the vital role which our Group plays in the global economy and therefore
our responsibility in promoting sustainable economic growth and financial stability for
our stakeholders. We monitor the evolving landscape in which we operate and the
positioning of our businesses to ensure that we can best fulfil our purpose and achieve
our ambition of being the leading global financial markets infrastructure business.
Underpinning our strategy is a commitment to our core principles of Open Access and
customer partnership.
 Our Purpose
We support global financial stability and sustainable economic growth by enabling
businesses and economies to fund innovation, manage risk and create jobs.
30
 Our Vision
To become the leading global financial markets infrastructure group.
Strategic pillar
 Data and analytics - The increasing importance of data in the investment and trading
process is shaping what customers require from financial markets infrastructure
businesses. Our Information Services division is driving the development of our data
and analytical capabilities. At a Group-wide level, we also aim to develop and refine
the datasets we source and the capabilities that we have in all of our businesses to
support our objective to become a global leader in data and analytics.
Examples:
a. We continue to invest and grow our product offering with over 340 new equity indices
launched in 2019 and developed new Fixed Income indices including the Climate
Risk-Adjusted World Government Bond Index
b. We have continued to drive organic initiatives across our Group to further explore how
we can utilize our proprietary datasets and capabilities, alongside targeted inorganic
initiatives such as the acquisition of Beyond Ratings in June and the proposed
acquisition of Refinitiv
 Capital formation and trade execution - Building on our existing capital markets
capabilities, we aim to further grow our global footprint and ability to offer cross-border
trading and investment opportunities, in addition to developing our multi asset class
capabilities and increasing our participation in the private markets capital raising
process. This is supported by a strong focus on developing our technology capabilities
to enable us to build and run high performing and resilient platforms.
Examples:
31
a. This year we launched the Shanghai-London Stock Connect initiative which provides
investors with access to investment opportunities in China through the London
markets
b. In February, we announced an investment in Nivaura, a digital platform for issuing and
administering corporate bonds, loans and equity, which will help us in developing
innovative solutions to assist companies in the capital raising process. We also
increased our investment in CurveGlobal, the interest rate derivatives venture formed
between LSEG and a consortium of dealer banks
c. In October we launched the Global Equity Segment which allows investors to trade
some US blue chip and US-listed Asian ADRs during London hours. This helps to
advance the London Stock Exchange’s ability to operate as a truly international
exchange
 Risk, collateral and processing solutions - Providing stable, transparent and

efficient post trade solutions globally where risk is appropriately managed is a key
priority for our business. We continue to invest in the stability and resilience of our
clearing and settlement businesses and in growing our regulatory reporting and post
trade capabilities to increase transparency for our customers and help them meet their
regulatory reporting requirements.
Examples:
a. In October we announced the creation of a Post Trade division, in effect from 1
January 2020, which brings together our leading clearing and settlement businesses:
LCH Group, CC&G and Monte Titoli and our regulatory reporting business, UnaVista.
The LSEG Post Trade division will allow us to deliver greater customer value by
pooling expertise, resources and servicing capabilities in Post Trade
b. We further grew our ForexClear offering by linking ForexClear with FX Connect
TradeNeXus, enabling simpler buy-side access to clearing
 Group operating model and culture - Creating a strong and diverse culture built
around our values and nurturing a Group mindset is a key enabler in building a Group
operating model focused on delivering our business strategy. Additionally, we are
committed to developing new ways of facilitating Group-wide collaboration across our
business divisions. The drive towards creating an effective Group operating model is
underpinned by our efforts in developing a stable, resilient and efficient technology
infrastructure for our customers and businesses.
Examples:
a. We have continued to refine our organizational structure across the Group. Our Group
COO is focused on building the operating model required to support our next phases
of growth and proposed integration of Refinitiv. Key progress made in 2019 included,
the appointment of a new Chief Information Officer who will be a member of LSEG’s
32
Executive Committee, the creation of a single Post Trade division bringing together
our post trade assets across the UK and Europe and the creation of a Group wide
compliance function
b. We have continued to upgrade our underlying technology infrastructure to address the
evolving needs of the business whilst simultaneously integrating a strong cyber
security competency within our operational processes
c. We have made improvements in employee mobility and diversity within the Group,
enabled by the introduction of a Group-wide career framework and the creation of
inclusion networks
Strategic Plan 2020-2022

The Strategic Plan sets out a number of operational priorities for the Group for the
next three years including:
•A return to profitability and strengthening of the balance sheet;
•Cultural integration and harmonization of the two SEC S.p.A. and Porta
Communications organizations, now SEC Newgate;
•Raising of the Group's visibility and reputation worldwide;
•Continuing the Group's acquisition plan to strengthen and increase capabilities; and,
•Implementing incentives and reward schemes to retain key talent.
Over the next few months the Group will be working to develop a fully articulated
market positioning for its Research, Innovation & Digital Transformation presence
which encompasses the significant progress made in this area to date including:
I. an innovative approach to research applied to communications. developed in
Australia and the UK;
II. an AI-based platform operating in all five key European languages, that will be
launched under a new brand and totally new set of tools, in the sentiment and
opinion tracking area. This will enable organizations to thoroughly assess the
reputation of a brand, company or product/service.
III. an important project in digital transformation aimed at creating a network of
digital transformation experts, multi-channel storytellers and creative thinkers to
help our clients to govern the challenges of rapidly evolving change in business,
technology and consumer behavior.
33
Current Status of London Stock Exchange during COVID-19
The COVID-19 pandemic has sent shock waves through the global economy and
forced huge changes to the way individuals, companies and nations live and work.
The Impact of COVID-19 on share prices

Changes in share prices allow us to see how different industries are affected by
COVID-19 in real-time. Changes in share prices reflect market expectations about a
number of effects, including: changes in final demand (people are buying more of some
items and less of other items), changes in intermediate demand (the firms that they sell
to are changing what they want to buy and how much), and restrictions in supply (it may
be difficult for some firms to obtain inputs they need due, for example, to interruptions to
their supply chain).
34
Figure 1: Percentage change in share prices of firms in different sectors listed on

the London Stock Exchange relative to the FTSE-All Share Index, 2 January – 23
March 2020
Figure 2: Percentage change in share prices of firms listed on the London Stock
Exchange in sectors with the largest share price movements relative to the FTSE-
All Share Index, from 2 January 2020
 On 17 March the government announced a raft of measures aimed at protecting

workers and businesses affected by measures taken to contain the spread of COVID-
19.
 These included a 12-month business rates holiday for firms in the retail, leisure and
hospitality industries and a Coronavirus Job Retention Scheme (JRS) that would pay
80% of employee wages for furloughed workers up to a maximum of £2,500 per month
for each employee.
 This package was aimed, at least in part, to prevent otherwise viable businesses from
shutting down.
35
Figure 3: Potential coverage of Coronavirus Job Retention Scheme relative to

output for different industries versus their share price changes relative to the
FTSE-All Share Index, 2 January – 23 March 2020
36
Bibliography
Disfold. (2020). Top 30 companies of the UK in the FTSE index 2020. Retrieved from
https://disfold.com/top-companies-uk-ftse/
Griffith, R., Levell, P., & Stroud, R. (2020). The impact of COVID-19 on share prices in
the UK. Retrieved from
https://www.ifs.org.uk/publications/14773?fbclid=IwAR12p-
5KyW5T1gtMYCe8qA9-VawtMk8rT6D_JXvmadkJv9rAf7M2LV0UWDI
London Stock Exchange. (2019). Strategic Plan 2020-2022. Retrieved from

https://www.londonstockexchange.com/news-article/SECG/strategic-plan-2020-
2022/14316809?lang=en&fbclid=IwAR225NFPqhsXRjQc3qrVhR0O98PxPrpjgTn
tLrBYL7B3O3X1qi3O_wP6KV4
London Stock Exchange. (2020). Broker Directory Select from London Stock Exchange
member firm brokers. Retrieved from www.londonstockexchange.com/personal-
investing/member-firm-broker-directory?page=1
London Stock Exchange. (2020). Debt Trading. Retrieved from

https://www.londonstockexchange.com/trade/debt-trading
London Stock Exchange. (2020). Equity Trading. Retrieved from

https://www.londonstockexchange.com/trade/equity-trading
London Stock Exchange. (2020). ETP Trading. Retrieved from

https://www.londonstockexchange.com/trade/etp-trading
London Stock Exchange. (2020). FTSE 100 . Retrieved from

www.londonstockexchange.com/indices/ftse-100/constituents/table
London Stock Exchange. (2020). How to list debt. Retrieved from

www.londonstockexchange.com/raise-finance/debt/how-list-debt-how-list
London Stock Exchange. (2020). How to list equity. Retrieved from

www.londonstockexchange.com/raise-finance/equity/how-list-equity-listing-
journey
London Stock Exchange Group plc. (2020). Strategy in Action. Retrieved from
https://www.lseg.com/investor-relations/group-glance/strategy-action
London Stock Exchange. (2020). Trade. Retrieved from

https://www.londonstockexchange.com/trade?lang=en
37
London Stock Exchange Group plc. (2020). Trading Strategies. Retrieved from
https://www.lseg.com/markets-products-and-services/our-markets/london-stock-
exchange/exchange-traded-funds/trading-strategies
London Stock Exchange. (2020). Our History. Retrieved from

https://www.londonstockexchange.com/discover/lseg/our-history
London Stock Exchange. (2020). Our Story. Retrieved from
https://www.londonstockexchange.com/stock/LSE/london-stock-exchange-group-
plc/our-story

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1

A Written Report on London Stock Exchange

Cortez, Catherine Joyce

Piorato, Marrian Kaye C.

Dr. Benjie Bunyi

November 30, 2020

Top 20 Listed Companies ............................................................................................... 7

List of Accredited Brokers/Advisers ............................................................................... 18

List of Securities Traded................................................................................................ 20

Trading Process, Methods and Techniques .................................................................. 22

Current Status of London Stock Exchange during COVID-19 ....................................... 33

 1698 - Jonathan’s Coffee House

 1970 - Real-time prices

 2017 - International Securities Market (ISM)

London Stock Exchange Group (LSEG) is an international markets infrastructure

Top 20 Listed Companies

Market cap (m) €101,677.48

Information: AstraZeneca PLC is an Anglo–Swedish multinational pharmaceutical

and biopharmaceutical company. AstraZeneca develops, manufactures, and sells

pharmaceuticals and biotechnology products to treat major disease areas including

cancer, cardiovascular, gastrointestinal, infection, neuroscience, respiratory, and

2. HSBC Holdings PLC

Market cap (m) €81,032.46

Industry: Diversified Banks

Information: HSBC Holdings PLC is a multinational banking and financial

operations in commercial banking, investment banking, retail banking and wealth

management, and global private banking.

Market cap (m) €69,742.20

Information: GlaxoSmithKline PLC, better known as GSK, is a pharmaceutical

healthcare business in oral health, pain relief, respiratory, nutrition/gastro-intestinal,

and skin health categories.

Market cap (m) €68,489.72

Sector: Consumer Defensive

Industry: Beverages, Wineries & Distilleries

Information: Diageo PLC is a multinational alcoholic beverages company.

brands including Guinness, Johnnie Walker, Smirnoff and Gordon’s.

5. British American Tobacco

Market cap (m) €61,325.07

Sector: Consumer Defensive

Information: British American Tobacco PLC, also known as BAT, is a

multinational cigarette and tobacco manufacturing company. Formed in 1902, BAT is

array of local brands.

Market cap (m) €61,111.42

Industry: Industrial Metals & Mining

presence, Rio Tinto is primarily operating in Australia and Canada.

7. Royal Dutch Shell

Market cap (m) €54,964.81

Industry: Oil & Gas

gas company. Founded in 1907, headquartered in the Netherlands and incorporated

exploration and production, refining, transport, distribution and marketing,

petrochemicals, power generation, and trading, and is also engaged in renewable

energies with biofuels, wind, and hydrogen.

Market cap (m) €53,542.07

Sector: Consumer Defensive

Industry: Household & Personal Products

Information: Unilever is a British-Dutch multinational consumer goods company dual-

Omo, Heartbrand ice creams, Hellmann’s, Knorr, Lipton, Lux, Magnum,

Rexona/Degree, Sunsilk, and Surf.

Market cap (m) €53,405.15

Industry: Oil & Gas

Information: BP PLC, formerly The British Petroleum Company and BP Amoco, is a

through exploration and production, refining, distribution and marketing,

energy with biofuels and wind power.