2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Today there are more than 200 global exchanges with different levels of capitalization. The activities of the described financial institutions have a direct impact on the securities market, the growth of the economy of individual states and the world as a whole. The world's leading stock exchanges set the pace for the development of the stock market. That is why it is worth familiarizing yourself with them in more detail.
Frankfurt Stock Exchange
In 1585, the largest and one of the most influential world exchanges, the German one, was founded. An institution was created with the sole purpose of setting a single exchange rate for gold and silver coins, which were used by merchants in the market square in a city called Frankfurt.
Today, the Deutsch Boerse Group regulates the activities of the stock exchange. Thanks to this, the bidding process is considered the most transparent and optimal. Nearly 90% of German shares are listed on the Frankfurt Stock Exchange. Of the 300 companies that participate in the listing, 140 are foreign, which allows the institution to be awarded the title of international.
Exchange-operator of the Xetra system, known for the highest level of liquidity of cash transactions. The electronic trading platform involved 650 participants, including 270 large banks and more than 4,000 traders.
DAX is the stock index of the Frankfurt Stock Exchange, which is calculated on the basis of 30 listed companies. This indicator helps to assess not only the activities of the financial institution itself, but also the economic condition of Germany.
New York Stock Exchange
NYSE Exchange is another representative of the world's largest stock exchanges, which is located in New York. We can safely say that the NYSE owns the world and determines the overall dynamics of the economy (literally).
On May 17, 1792, several brokers signed the Button Woods Agreement, which created the NYSE. New York Bank shares were the first securities to be listed on the stock exchange. Since then, the institution has developed rapidly, greedily absorbing all the innovations and technological innovations, attracting new members and taking over the global marketplaces.
The film "The Wolf of Wall Street" drew the attention of many people to the operation of the world's stock exchanges and created some deceptive impression of noisy machinations inside the building itself. One has only to visit the famous premises, and one gets the feeling that you are being shown an ordinary office. But behind the gray booths and focused brokers, there is crazy money flowing through their accounts every second.
Indices of world stock exchangesthey are guided by NYSE indices, there are two of them: NYSE Composite Index and NYSE 100 U. S. index. This is another point that defines the global significance of the activities of this institution.
Tokyo Stock Exchange
Tokyo among all the world's stock exchanges is second only to New York. Despite significant pressure from neighbors, the institution is famous for its high capitalization, discipline and respect for all participants.
It began its existence on May 15, 1878. 14 days after the opening, that is, the first of June, the first auction took place. Despite the traveled path and years of studying the European stock system, Tokyo Stock Exchange Group LTD. was not initially popular and trusted by investors.
The real breakthrough was the period after World War II. At that time, there was an absolute demilitarization of the country, an emphasis on technological development and scientific progress. By the 1990s, the Tokyo Stock Exchange had concentrated more than half of the world's capital.
Three groups of companies are listed here:
- first section - the largest capitalization;
- second section - medium enterprises;
- moms are fast-growing firms and industries.
Main indices - NIKKEI 225 and TOPIX.
London
LSE is the oldest stock exchange in Europe and the most famous stock market. The trading of the world exchange does not depend on the trading floors based in America. And it was here that many of the tools that are most often used in this activity appeared.
In fact, the history of the London Stock Exchange began in the 16th century, when a financial consultant convinced the Queen (Elizabeth I) to form a platform where businessmen would meet on issues of purchase and sale. Only representatives of the nobility and court retinue could get here.
Merchants without royal roots decided to create their own collections. The meeting place was Jonathan's Coffee Shop. Here they agreed on the supply of cereals, matches and s alt; Delayed delivery trades were documented in futures and options.
Later, the English Parliament fought the "street brokers". Despite the threats and the fight against the king, independent traders still created their exchange in 1801.
Today trading takes place on two markets:
- Main - there are companies here that meet all the requirements of the UK Financial Conduct Authority.
- Alternative - presents less stringent requirements for young and innovative firms.
It is also worth noting the existence of two separate sites, which simplifies and more systematizes the organization of trading. We are talking about the market for debt securities and depositary receipts; sophisticated tools for institutional investors.
Shanghai
Unlike its predecessors, the Shanghai Stock Exchange was established not so long ago - in the early 90s of the last century. It is also listed among the largest stock exchanges in the world, which can be easily explained by the GDP of the People's Republic of China (whoserates have long surpassed the United States of America).
It should be separately noted the tough financial policy of the PRC government in relation to the inflow of funds from abroad, and hence to the activities of foreign investors. If these restrictions were lifted, then a new leader in this field would probably emerge. So, the Shanghai Stock Exchange performs, in addition to the main ones, also non-traditional functions:
- capital retention within the country through the development of the stock market;
- management of relations between participants;
- limiting access to the Chinese securities market.
The listed shares here are divided into two categories, which is why the evaluation and trading are carried out in two different currencies: yuan and US dollars. The performance of the exchange is evaluated using a number of indices: SSE Composite, SSE 50, SSE 180, SSE 380.
Australian Stock Exchange
In contrast to the major exchanges, the ASX operates seven days a week. The institution concentrates securities of financial companies and innovative enterprises.
The first stock exchange in Australia was founded in 1861 in Melbourne. The building traded shares of industrial enterprises operating in the mining industry.
The development of the stock market was accelerated by British immigrants. Each city created regional exchanges with their own management and control systems. By the 40s they all united into the Association of Australian Exchanges and in a few yearsbecame the world leader in futures.
ASX was the first to move to automated trading and seamlessly transitioned to e-trading. Current Indices - S&P/ASX 200.
Swiss Stock Exchange
Although this exchange is not one of the largest, it plays a significant role in the global financial system. SWX is quite stable and flexible, so it easily endures crisis situations and maintains solid dividends.
The Swiss World Stock Exchange was formed through the merger of institutions in Zurich, Bezel, Lausanne, Bern, St. Gallen and Neustael. The securities market in Switzerland has adopted the introduction of electronic trading and is now based solely on it.
Indices that are valued on the exchange are divided into three categories:
- SPI Family.
- SMI Family.
- SXI Family.
World Exchanges
A few more exchanges worth mentioning:
- Hong Kong.
- Euronext.
- Toronto Stock Exchange.
- Bombay.
- National Stock Exchange of India.
- Korean.
- Madrid.
The schedule of world exchanges is easy to find on the official websites of these institutions, where you can get acquainted with the mode of operation in detail, as well as study in detail the set of rules and requirements for participation. The securities market is growing faster and faster every day, so it is very important to understand the principle of operation of all world stock exchanges and to know the history of their opening and operation, the ups and downs that took place in the offices of these institutions.
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