Today, there are more than 200 world 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. Leading world exchanges set the pace of development of the stock market. That is why you should familiarize yourself with them in more detail.
Frankfurt stock exchange
In 1585, the largest and one of the most influential world exchanges was founded - German. An institution was created with one single purpose - the establishment of a single exchange rate of gold and silver coins, which were used by traders on a market square in a city called Frankfurt.
Today it regulates the activities of the Deutsch Boerse Group exchange. Thanks to this, the bidding process is considered the most transparent and optimal. Almost 90% of German shares are listed on the Frankfurt Stock Exchange. Of the 300 enterprises that participate in the listing, 140 are foreign, which makes it possible to assign the institution the title of international.
The operator of the Xetra system is known for the highest liquidity of cash transactions. The electronic trading platform involved 650 participants, among which 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 companies, which are listed. This indicator helps to evaluate not only the activities of the financial institution itself, but also the economic condition of Germany.
New york stock exchange
NYSE is another representative of the largest world exchanges 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 Buttonwood Agreement, which was subsequently created by the NYSE. New York Bank shares were the first securities to be traded on the stock exchange. Since then, the institution has developed rapidly, eagerly absorbing all innovations and technological innovations, attracting new participants and taking itself global trading floors.
The movie “The Wolf from Wall Street” drew the attention of many people to the work of world exchanges and created a certain deceptive impression of noisy frauds inside the building itself. One has only to visit the famous premises, and one gets the feeling that they are showing you an ordinary office. But behind the gray booths and concentrated brokers lurk crazy money passing every second through their accounts.
Indices of world exchanges are guided by the NYSE indexes, there are two of them: NYSE Composite Index and NYSE 100 US Index. This is another point that determines the global significance of the activities of this institution.
Tokyo Stock Exchange
Tokyo is second only to New York among all world exchanges. 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, on the first of June, the first auction took place. Despite the path and years of study of the European stock system, Tokyo Stock Exchange Group LTD. initially did not enjoy the popularity and confidence of investors.
The real breakthrough was the period after the Second World War. At that time, there was an absolute demilitarization of the country, emphasis on technological development and scientific progress. Already by the 90s, the Tokyo Stock Exchange had concentrated more than half of the world's capital.
The shares of companies of three groups are quoted here:
- the first section is the largest capitalization;
- second section - medium-sized enterprises;
- Moms are fast-growing firms and market sectors.
The main indexes are NIKKEI 225 and TOPIX.
London
LSE is the oldest exchange in Europe and the most famous securities market. World exchange trading does not depend on trading floors based in America. And it was here that many tools appeared that are most often used in this activity.
In fact, the history of the London Stock Exchange began in the sixteenth century, when the finance consultant persuaded the Queen (Elizabeth I) to form a platform where meetings of salesmen on sales issues would take place. Only representatives of the nobility and the court suite could get here.
Merchants without royal roots decided to create their own collections. The venue was the Jonathan Coffee House. Here agreed on the supply of cereals, matches and salt; Deferred delivery transactions were documented in futures and options.
Later, the English parliament fought with "street brokers." Despite the threats and the struggle with the king, independent traders nevertheless created their own exchange in 1801.
Today, trading is carried out in two markets:
- The main one is the presence of companies that meet all the requirements of the Office of Financial Regulation and Supervision of the United Kingdom.
- Alternative - less stringent requirements are presented for young and innovative firms.
It is also worth noting the existence of two separate platforms, 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 created not so long ago - in the early 90s of the last century. It is also listed among the largest exchanges in the world, which is easily explained by the volume of GDP of the People’s Republic of China (whose rates have long surpassed the United States of America).
It should be noted separately the tough financial policy of the PRC government in relation to the inflow of funds from abroad, and therefore to the activities of foreign investors. If these restrictions were lifted, then, probably, a new leader in this area would appear. So, the Shanghai Stock Exchange performs, in addition to the main, also non-traditional functions:
- retention of capital within the country through the development of the stock market;
- management of relations between participants;
- restriction of access to the Chinese securities market.
Listed shares here are divided into two categories, from which valuation and trading are held in two different currencies: RMB and US dollars. The results of the operation of the exchange are evaluated using a number of indices: SSE Composite, SSE 50, SSE 180, SSE 380.
Australian stock exchange
In contrast to the major exchanges, ASX operates seven days a week. The institution focused securities of financial companies and innovative enterprises.
The first exchange in Australia was founded in 1861 in the city of Melbourne. The building traded in shares of industrial enterprises operating in the mining industry.
The development of the stock market accelerated by British immigrants. In each city, regional exchanges were created with their own management and control systems. By the 1940s, they had all merged into the Association of Australian Exchanges and in a few years had become world leaders in futures.
ASX first switched to automatic trading and easily entered electronic trading. Valid indices are S & P / ASX 200.
Swiss stock exchange
Although this exchange is not among the largest, it plays a significant role in the global financial system. SWX is quite stable and flexible, therefore, it easily tolerates crisis situations and maintains solid dividends.
By merging institutions in Zurich, Bezel, Lausanne, Berne, St. Gallen and Nevstael, the Swiss Stock Exchange was formed. The securities market in Switzerland has adopted the introduction of electronic commerce and is now based solely on this.
Indices that are evaluated on the stock exchange are divided into three categories:
- SPI Family.
- SMI Family.
- SXI Family.
World exchanges
It is worth noting a few more exchanges:
- Hong Kong
- Euronext.
- Toronto Stock Exchange.
- Bombay.
- National Stock Exchange of India.
- Korean
- Madrid
The schedule of world exchanges can be easily found on the official websites of these institutions, where you can familiarize yourself with the working hours in detail, as well as examine 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 occurred in the offices of these institutions.