London Stock Exchange

To alleviate its continuous shortage of cash, the Stuart dynasty issued loan tallies and tickets for future bill settlement. Dealers and tally-brokers carried on a market in these items, whose value depended on the prospect of repayment, first at the Royal Exchange and then in the City coffee houses. Later, these dealers turned to the stocks of new commercial companies. In 1762, 150 substantial brokers attempted to take over Jonathan's Coffee House in Change Alley, Cornhill, for their exclusive use but, thwarted by a law suit, they moved, in 1773, into their own premises in Sweetings Alley, Threadneedle Street, at whichtime the name "Stock Exchange" was formally adopted. A further move was made in 1802 into purpose-built accommodation on the corner of Throgmorton and Old Broad Streets. Further expansion on this site occurred, the premises being rebuilt in the 1880s and 1970s.

Until 1802, the Stock Exchange was open to anyone who paid the 6d a day subscription, but in March 1802 a deed of settlement formalised its constitution and the Exchange was closed to non-members. By its new constitution, a Board of Trustees and Managers (representing the owners) was established to regulate financial affairs and manage the building, while a General Purposes Committee was elected to regulate membership and all aspects of business. Sub-committees were appointed from amongst the members to undertake the detailed work. This arrangement lasted until 1946 when a reorganisation took place to solve the difficulties caused by the two separate bodies. The Stock Exchange became a members' society and the Council for the Stock Exchange assumed responsibility for every aspect of its government. Until 1986, the London Stock Exchange was unique amongst world exchanges in its distinction between dealing and broking. Dealers, or jobbers, offered stocks and shares for purchase or sale, and brokers acted as middlemen between them and the public, with the Settlement Department acting as a clearing house for all transactions. Rules and regulations to ensure fairness and eliminate fraud became numerous and complex. In cases of a member's financial failure, two members known as Official Assignees were appointed to administer the assets of the defaulter. In 1950, a Compensation Fund was established to provide further protection from losses caused directly by members.

The Federation of Stock Exchanges in Great Britain and Ireland was formed in 1965 with the Federal Committee as its governing body with representatives from all the regional stock exchanges. Its objectives were to increase the efficiency of dealing arrangements in the country as a whole and to achieve a common standard for the admission of shares to the market.