1. European Stock Markets and Recent Developments By : Suchaya Hongstong

2. Topics The overview of the European stock markets Structure and organization of the European stock markets Major European stock exchange markets and their operations Recent developments

3. European Stock Market The UK stock financial system played an important roles during the nineteenth century Before 1995, the European stock markets operated by being isolation and barriers to capital mobility A reform with advances in computer and telecommunication in mid 1980. London Stock Exchange (LSE) is the largest European market in term of total market capitalization, listed companies, and volume of trading. The market value of LSE domestic firms is less than half the size of Tokyo Stock Exchange and only 15% the size of New York Stock Exchange.

4. Organizations and Structures of Major European stock market Three distinguishable types of organization - Privately owned and self regulated market - State controlled market - Semi-independent market

5. United Kingdom Financial institutions in London has provided service to international clients around the world since 1979 In 1993, the Irish Stock Exchange was merged with other British and Irish stock exchange creating the International Stock Exchange of Great Britain and Ireland In 1995, Dublin Stock Exchange separated from the UK exchange to be an independent Irish Stock Exchange FTSE 100 (Footsie): Index of 100 largest companies listed on the London Stock Exchange

6. Germany Foreign stocks were first introduced in 1950s. The Frankfurt Stock Exchange (FSE), the Germany’s largest and the most important stock market, is operate by Deutsche Borse AG There are other seven stock markets in Berlin, Hamburg, Hanover, Düsseldorf, Munich, Bremen and Stuttgart 70% of the equities are the foreign equities. And 80% are foreign bonds

7. Major Stock Market Operations and Activities

8. London Stock Exchange (LSE) Started in the 17th Century as London coffee houses and became the city most important financial institution.

9. London Stock Exchange (LSE) LSE became the world’s –global exchange business –equities exchange –pool of capital links to Asia and Africa A series of reforms called “Big Bang” in 1986 Stock Exchange Automated Quotation (SEAQ) Alternative Investment Market (AIM) for small companies in 1995 Two primary markets –Main Market –AIM

10. Deutsche BÖrse (FWB) Offers a wide range of services and system applications enabling shares and derivatives to be traded under one roof FWB introduced an electronic trading system called the Exchange Electronic Trading (XETRA) in 1997

11. Euronext Established in 2000 by a merger of Amsterdam, Bressels and Paris exchanges Offer financial instruments, trading in securities and derivatives

12. Recent Developments in European Stock Markets Accelerating integration and globalization through the deregulation and development of technology Euro currency has been launched on 1 Jan 1999 with 11 countries Alliance with U.S stock markets Pan-European exchanges offers standardization of trading platforms The Deutsche Borse Frankfurt has merged with LSE to create the new entity called International Exchange (iX)

13. Thank you