The London Stock Exchange is located and London in Paternoster Square close to St Pauls Cathedral. Recognised in financial circles as one of the the largest stock exchanges in the world the exchange was founded in 1801 and is often referred to by its ticker name of LSE.
Sharetrading origins in London can be traced back specifically to the need of financing two voyages which were the Muscovy Companys voyage to China and the East India Companys voyage to India. Trading in stocks of East India can be dated back to 1688.
Unable to raise the financial muscle required for such epic journeys independently the companies began selling shares in their companies to merchants with a promise of a profit share on any gains eventually made.
The idea was seen as a very effective vessel for making money for such ventures and it soon became popular practice. It is thought that by 1695 there were as many as 140 joint stock companies and the trade in shares was focused around two coffee shops called Garraways and Jonathans commonly refered to as Change Alley.
Following a number of incidents in insider trading and market rigging a law was passed in 1697 to “restrain the number and ill-practice of brokers and stockjobbers”. The aim of the act was to ensure that all brokers were licensed and swore under oath to act lawfully.