London United Kingdom

History

Founded by Thomas Gresham on the model of the Antwerp Bourse, the Royal Exchange was established as a stock exchange and officially opened by Elizabeth I of England in 1571.

In the 17th century, stockbrokers were prohibited from operating within the Royal Exchange due to their perceived rude manners. Instead, they had to conduct business from nearby establishments, most notably Jonathan’s Coffee-House. It was at this coffee house in 1698 that a broker named John Casting began listing prices for commodities, exchange rates, and essential provisions like salt, coal, and paper. Initially, this was not a daily list and was only published on a few days of the week.

Following the destruction of Gresham’s Royal Exchange building in the Great Fire of London, it was rebuilt and re-established in 1669. This marked a departure from coffee houses and a move towards the modern stock exchange model. After the Seven Years’ War (1756–1763), trade at Jonathan’s Coffee-House experienced a resurgence. In 1773, Jonathan, along with 150 other brokers, established a club and inaugurated a new and more formal “Stock Exchange” in Sweeting’s Alley. The Subscription Room, established in 1801, became the first regulated exchange in London, although its transformation faced resistance. Despite decades of uncertainty and turbulence, the stock market experienced a resurgence in business in the late 1950s.

The FTSE 100 Index, pronounced “Footsie 100,” was launched through a partnership between the Financial Times and Stock Exchange in February 1984. Regarded as one of the most valuable indices, it monitors the movements of the top 100 companies listed on the Exchange. As of November 2021, the total market value of all companies trading on the London Stock Exchange (LSE) reached £3.9 trillion. Its current location is in Paternoster Square near St Paul’s Cathedral in the City of London. Since 2007, the FTSE 100 has been a part of the London Stock Exchange Group.