European Stock Markets and Recent Developments

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European Stock Markets and Recent Developments
By Suchaya Hongstong
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Topics

• The overview of the European stock markets
• Structure and organization of the European stock
  markets
• Major European stock exchange markets and their
  operations
• Recent developments

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European Stock Market

• The UK stock financial system played an important
  roles during the nineteenth century
• Before 1995, the European stock markets operated
  by being isolation and barriers to capital
  mobility
• A reform with advances in computer and
  telecommunication in mid 1980.
• London Stock Exchange (LSE) is the largest
  European market in term of total market
  capitalization, listed companies, and volume of
  trading.
• The market value of LSE domestic firms is less
  than half the size of Tokyo Stock Exchange and
  only 15 the size of New York Stock Exchange.

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Organizations and Structures of Major European
stock market

• Three distinguishable types
• of organization
• Privately owned and self
• regulated market
• State controlled market
• Semi-independent market

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United Kingdom

• Financial institutions in London has provided
  service to international clients around the world
  since 1979
• In 1993, the Irish Stock Exchange was merged with
  other British and Irish stock exchange creating
  the International Stock Exchange of Great Britain
  and Ireland
• In 1995, Dublin Stock Exchange separated from the
  UK exchange to be an independent Irish Stock
  Exchange

• FTSE 100 (Footsie) Index of 100 largest
  companies listed on the London Stock Exchange

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Germany

• Foreign stocks were first introduced in 1950s.
• The Frankfurt Stock Exchange (FSE), the Germanys
  largest and the most important stock market, is
  operate by Deutsche Borse AG
• There are other seven stock markets in Berlin,
  Hamburg, Hanover, Düsseldorf, Munich, Bremen and
  Stuttgart
• 70 of the equities are the foreign equities. And
  80 are foreign bonds

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Major Stock Market Operations and Activities
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London Stock Exchange (LSE)

• Started in the 17th Century as London coffee
  houses and became the city most important
  financial institution.

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London Stock Exchange (LSE)

• LSE became the worlds
• global exchange business
• equities exchange
• pool of capital links to Asia and Africa
• A series of reforms called Big Bang in 1986
• Stock Exchange Automated Quotation (SEAQ)
• Alternative Investment Market (AIM) for small
  companies in 1995
• Two primary markets
• Main Market
• AIM

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Deutsche BÖrse (FWB)

• Offers a wide range of services and system
  applications enabling shares and derivatives to
  be traded under one roof

• FWB introduced an electronic trading system
  called
• the Exchange Electronic Trading (XETRA) in
  1997

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Euronext

• Established in 2000 by a merger of Amsterdam,
  Bressels and Paris exchanges

• Offer financial instruments, trading in
  securities and derivatives

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Recent Developments in European Stock Markets

• Accelerating integration and globalization
  through the deregulation and development of
  technology
• Euro currency has been launched on 1 Jan 1999
  with 11 countries
• Alliance with U.S stock markets

• Pan-European exchanges offers
• standardization of trading platforms
• The Deutsche Borse Frankfurt has
• merged with LSE to create the new
• entity called International Exchange
• (iX)

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Thank you