London Stock Exchange in the Development of Financial Services Business in the UK - Essay Example

There are two major trading procedures used at LSE including Stock Exchange Automated Quotation System (SEAQ) and Stock Exchange Electronic Trading Service (SETS). With the help of these procedures trading between the companies, brokers and people is managed. Though LSE is international share market but mainly the UK equities are traded here and different products are introduced for financial services business like gild edges, corporate and local authority bonds, derivatives, Eurobonds, warrants and covered warrants etc.

These services have allowed the development and expansion of financial services business across the UK. The London exchange has evolved as the heart of financial markets and the most important, prestigious and influential financial center of UK. It has introduced and promoting several market products that facilitate the financial service business in IK like the Alternative investment market AIM that was established in 1995 for allowing investment in the smaller companies. The electronic system was also introduced in the stock exchange in 1997 whereas techMart was also introduced in order to meet the demands and requirements of the rapidly growing technology sector.

LSE also supplied high quality prices, news and information about the financial communities in UK allowing the businesses across UK to keep eye upon the changing trends of the financial market and make informed decisions about their investments. LSE works with the aim to ensure winning business for the UK financial markets. The portfolio has been developed in a way that it meets the international and UK financial market’s needs. LSE also supports the businesses related with credit union, stock brokerage, investment funds, insurance companies and consumer finance companies because almost all the important companies of UK operating in these sector have been listed in LSE and support is provided to these companies to facilitate the expansion of financial services business across UK.

In order to play important role in the development of investment funds being part of the financial services business, the London Stock exchange supports the close-ended investment funds. The main market of LSE offers the funds access that act as the widest possible investor base for the institutional to the general retail investors. This service facilitates the closed ended investment to the investors across the UK by defining certain rules about the admission and ongoing levels of the shareholders engagement in the process of investment.

LSE acts as the facilitator of non-bank finance to the UK companies and provide them access to the equity finance provided by the marker. In this way, it works for the economic stability for the UK companies even in the era of crisis and support the expansion of financial services business across UK by acting as facilitator of investment funds, insurance companies and other banking services. In order to support the financial service businesses, LSE has also created the specialist fund market that is basically a peer market design especially established to appeal the alternative funds and the sophisticated investors involved with these funds.

This market has been governed in line with the EU directive minimum standards where the investors