The market in London that deals in securities. Deal ings in securities began in London in the 17th century. The name Stock Exchange was first used for New Jonathan’s Coffee House in 1773. although it was not formally constituted until 1802. The development of the industrial revolution encouraged many other share markets to flourish throughout the UK, all the remnants of which amalgamated in 1973 to form the Stock Exchange of Great Britain and Ireland. After the *Big Bang in 1986 t his organization became the International Stock Exchange of the UK
and Republic of Ireland Ltd. Its major reforms included:
(-i) allowing banks. insurance companies
and overseas securities houses to become members and to buy existing member firms;
- Abolishing scales of commissions. Allowing commissions to be negotiated;
- abolishing the division of members into jobbers and brokers, enabling a member firm to deal with the public, to buy and sell shares for their account, and to act as *market makers;
- the introduction of the *Stock
Exchange Automated Quctat ions System (SEAQ). a computerized dealing system that has virtually abolished face-to-face dealing on the floor of an exchange. In merging with members of the inter national broking community in London, the International Stock Exchange became a registered investment exchange, and The Securities Association Ltd became a *Self-Regulating Organization (SRO) com plying with the Financial Services Act (1986). The International Stock Exchange pro vides two markets for companies: the ITlain market for *listed companies and the *Alternative Investment Market (AIM). The International Stock Exchange formerly provided a market in traded options, but this has now moved to the *London International Financial Futures and Options Exchange.
