History of London Stock Exchange in Timeline

The London Stock Exchange (LSE), located in London, is a major global stock exchange with a total market value of US$3.42 trillion as of July 2024. Part of the London Stock Exchange Group since 2007, it remained the most valued stock exchange in Europe as of 2023, despite some post-Brexit challenges. Approximately 12-15% of UK residents/British adults have investments in stocks and shares.

1914: World War I Impact

In 1914, the outbreak of World War I greatly impacted both the City and the Stock Exchange. Due to financial fears, the Exchange closed from the end of July until the New Year, causing alternative business practices to emerge.

January 1915: Reopening with Restrictions

On 4 January 1915, the Exchange reopened with restrictions, requiring transactions to be in cash only.

November 1918: Peace Returns

When peace returned in November 1918, the mood on the trading floor was generally subdued.

1923: Coat of Arms Received

In 1923, the Exchange received its own coat of arms, with the motto Dictum Meum Pactum, meaning My Word is My Bond.

1937: Plans for a New War

In 1937, officials at the Exchange used their experiences from World War I to create plans for handling a new war, including concerns about air raids.

September 1939: Exchange Closes and Reopens

On the first day of September 1939, the Exchange closed until further notice due to World War II. However, unlike the previous war, it reopened six days later on 7 September.

December 1940: The Great Fire

On the night of 29 December 1940, during one of the greatest fires in London's history, the Exchange's floor was hit by incendiary bombs, but they were quickly extinguished. Trading was done mostly over the phone due to the low volume and air raid danger.

1945: Closure Due to Rocket Damage

In 1945, the Exchange closed for one day due to damage from a V-2 rocket during wartime, although trading continued in the basement.

1967: Work Begins on the New Stock Exchange Tower

Work on the new Stock Exchange Tower began in 1967.

November 1972: New Stock Exchange Tower Opening

On 8 November 1972, Queen Elizabeth II opened the new Stock Exchange Tower, a 26-storey building with a 23,000 sq ft trading floor.

1973: Changes to the Stock Exchange

1973 marked changes for the Stock Exchange with two trading prohibitions being abolished, admitting women and foreign-born members. In March 1973, the London Stock Exchange merged with eleven British and Irish regional exchanges, creating the CEO position, filled by Robert Fell.

January 1984: FTSE 100 Index Launch

On 3 January 1984, the FTSE 100 Index was launched by a partnership of the Financial Times and the Stock Exchange, tracking the 100 leading companies listed on the Exchange.

1986: Big Bang Deregulation

In 1986, the UK financial markets experienced a sudden deregulation known as the "Big Bang", which included abolishing fixed commission charges and the distinction between stockjobbers and stockbrokers, as well as transitioning to electronic trading.

July 1990: IRA Bombing

On 20 July 1990, a bomb planted by the Provisional Irish Republican Army (IRA) exploded at the Exchange, causing damage but no injuries due to a warning call.

1991: Governance Changes

In 1991, the governing Council of the Exchange was replaced by a board of directors, and the trading name became "The London Stock Exchange".

1992: Visitor's Gallery Closure

In 1992, the Exchange's visitor gallery was permanently closed due to the increasing shift towards electronic trading platforms.

1995: Launch of AIM

In 1995, the Exchange launched the Alternative Investment Market, the AIM, to allow growing companies to expand into international markets.

October 1997: Introduction of SETS

In October 1997, the previous system, SETS, was introduced.

May 2000: Merger Announcement

On 3 May 2000, it was announced that the LSE would merge with the Deutsche Börse; however this fell through.

2000: Became a Public Limited Company

In 2000, the LSE's shareholders voted to become a public limited company, named London Stock Exchange plc. The LSE also transferred its role as the United Kingdom's listing authority to the Financial Services Authority.

2003: Creation of EDX London

In 2003, EDX London, an international equity derivatives business, was created in partnership with OM Group. The Exchange also acquired Proquote Limited, a new generation supplier of real-time market data and trading systems.

2004: Moved to Paternoster Square

In 2004, the London Stock Exchange (LSE) moved to a new headquarters in Paternoster Square, close to St Paul's Cathedral.

2004: MiFID Directive

The AIM is classified as a Multilateral Trading Facility (MTF) under the 2004 MiFID directive

December 2005: Rejection of Takeover Offer from Macquarie Bank

In December 2005, the LSE rejected a £1.6 billion takeover offer from Macquarie Bank, deeming it "derisory". Shortly after, an unsolicited approach from NASDAQ valued the company at £2.4 billion, which was also rejected.

April 2006: NASDAQ Deal with Threadneedle Asset Management

On 11 April 2006, NASDAQ struck a deal with LSE's largest shareholder, Ameriprise Financial's Threadneedle Asset Management unit, to acquire all of their stake at £11.75 per share. NASDAQ also purchased additional shares, resulting in a total stake of 15%.

November 2006: NASDAQ Hostile Offer

On 20 November 2006, NASDAQ increased its stake to 28.75% and launched a hostile takeover offer at £12.43 per share, which the LSE immediately rejected, stating it "substantially undervalues" the company.

December 2006: NASDAQ Revises Offer for LSE

In December 2006, NASDAQ revised its offer for the London Stock Exchange (LSE), aiming to complete the deal with 50% (plus one share) of LSE's stock instead of the initially sought 90%. However, the U.S. exchange did not increase its bid, which was considered unsatisfactory by many hedge fund managers and Furse.

February 2007: NASDAQ's Offer for LSE Lapses

In February 2007, NASDAQ's offer for the LSE was rejected by shareholders, receiving acceptances of only 0.41% by the deadline on February 10, 2007, leading to the offer lapsing.

June 2007: Agreement on Terms of Offer to Borsa Italiana

On 23 June 2007, the London Stock Exchange (LSE) announced that it had agreed on the terms of a recommended offer to the shareholders of the Borsa Italiana S.p.A. The merger of the two companies created a leading diversified exchange group in Europe. The combined group was named the London Stock Exchange Group.

August 2007: NASDAQ abandons LSE takeover plan

In August 2007, NASDAQ announced it was abandoning its plan to take over the LSE and would seek options to divest its 31% shareholding after the failed takeover attempt.

September 2007: NASDAQ agrees to sell LSE shares to Borse Dubai

In September 2007, NASDAQ agreed to sell the majority of its shares in the LSE to Borse Dubai, resulting in the United Arab Emirates-based exchange holding 28% of the LSE.

2007: Acquisition of MBE Holdings

In 2007, Borsa Italiana exercised its call option to acquire full control of MBE Holdings, giving the London Stock Exchange Group control of Mercato dei Titoli di Stato (MTS). This merger enhanced the range of covered European fixed income markets.

2007: Merger with Borsa Italiana

In 2007, the London Stock Exchange (LSE) merged with Borsa Italiana, creating London Stock Exchange Group (LSEG).

2007: Part of the London Stock Exchange Group

In 2007, the London Stock Exchange became part of the London Stock Exchange Group (LSEG).

2007: SETS Ended

The previous system, SETS, was used until 2007.

2009: Acquisition of Turquoise

In 2009, London Stock Exchange Group acquired Turquoise, a Pan-European MTF.

2009: Planning Switch to Linux

In 2009, after suffering multiple periods of extended downtime and unreliability with TradElect, the LSE announced plans to switch to Linux in 2010.

2010: Planning Switch to Linux

In 2009, after suffering multiple periods of extended downtime and unreliability with TradElect, the LSE announced plans to switch to Linux in 2010.

February 2011: Migration to MillenniumIT

In February 2011, the main market migration to MillenniumIT technology was successfully completed.

February 2011: London Stock Exchange Group Announces Merger with TMX Group

On February 9, 2011, the London Stock Exchange Group (LSEG) announced an agreement to merge with the Toronto-based TMX Group, which owns the Toronto Stock Exchange. This merger aimed to create a combined entity with a market capitalization of listed companies equal to £3.7 trillion.

June 2011: LSEG Terminates Merger with TMX Group

On June 29, 2011, the LSEG announced the termination of its merger with TMX Group. This decision was made because LSEG and TMX Group believed that the merger was unlikely to achieve the required two-thirds majority approval at the TMX Group shareholder meeting, despite LSEG obtaining the necessary support from its own shareholders.

October 2011: Occupy London Protests

On 15 October 2011, Paternoster Square, the location of the London Stock Exchange, was the initial target for the Occupy London protesters. Police thwarted attempts to occupy the square and sealed off the entrance because it is private property. Protesters then moved to St Paul's Cathedral.

April 2019: Extinction Rebellion Disruption

On 25 April 2019, during the final day of the Extinction Rebellion disruption in London, 13 activists glued themselves together, blocking entrances to the LSE. They were arrested on suspicion of aggravated trespass.

October 2020: Agreement to Sell Borsa Italiana to Euronext

On 9 October 2020, the LSE agreed to sell the Borsa Italiana (including Borsa's bond trading platform MTS) to Euronext for €4.3 billion in cash.

2020: Stock Investments

According to the 2020 Office for National Statistics report, approximately 12% of UK-resident individuals reported having investments in stocks and shares. According to a 2020 Financial Conduct Authority report, approximately 15% of British adults reported having investments in stocks and shares.

April 2021: Euronext Acquisition of Borsa Italiana

Euronext completed the acquisition of the Borsa Italiana Group on 29 April 2021 for a final price of €4,444 million.

March 2022: Suspension of Trading in Russian Securities

On 3 March 2022, the London Stock Exchange (LSE) declared it would suspend trading in GDR securities for Russian firms, subsequent to the 2022 Russian invasion of Ukraine.