The London Stock Exchange or LSE, and the Tokyo Stock Exchange, which is also referred to as Tosho in Japanese or TSE, are the two beehives where multi-million dollar deals are conducted daily, and the business activity never stops. Two articles were selected to obtain an insight into the two Stock Exchange giants. The first article, the ‘London Stock Exchange’ provides an overview of the LSE, sheds light on the largest deals, and provides various statistical data regarding deals conducted. The TSE provides an overview and a historical perspective throwing a spotlight on the difficulties that current brokers are facing in a world of cutting-edge technologies.
The LSE is diversified and incorporated with Borsa Italiana and MillenniumIT, these subsidiaries allow the LSE to diversify its activities and provide exchange platforms for customers throughout entire Europe (Kahn, Sullivan, & Stackelberg, 2011). The LSE services four different business segments and offers versatile exchange trading services. The division dealing with Capital Markets helps companies attract financing for investment and provides investors with tools facilitating trading (Kahn et el., 2011). Other divisions include Post Trade Services, which helps to close the deals in an effective and hassle-free manner. The Information service provides clients and subsidiaries with relevant, real-time market data. The Technology Services develops and provides clients with high-tech platforms and trading software. The LSE generates income from the divisions mentioned above. The Market division charges companies for being listed on the exchange, admission costs around £57,000 (Kahn et el., 2011). According to the article, the LSE works across entire Europe, and this creates a high level of competition. The main rivals are NYSE Euronext Inc, Deutsche Boerse AG as well as global competitors from emerging exchange platforms.
The article of the TSE deals with the issue of cutting-edge technologies and the drawbacks that the new technologies bring for present-day employees. New technologies are on the increase and if it was possible to generate 10 per cent of orders in 2010, today the number may be as high as 72 per cent (Nakamura & Hasegawa, 2015). High-frequency trading has sparked criticism in the United States, and now effective deals boil down to those who have the fastest computers as opposed to the past years when intellectual abilities played into success. Making money at TSE is harder than in the United States or Great Britain because 90 per cent of all stock trading occurs in Tokyo whereas London and US stock markets are diversified and provide platforms in various locations (Nakamura & Hasegawa, 2015).
The value of shares sold and bought in the Stock Exchange both in London and Tokyo is enormous. Since 2010, the turnover of shares, according to TSE data, amounted to $2.3 trillion (Nakamura & Hasegawa, 2015). To put this into perspective, the LSE completed around 116 million contracts and processed over €3 trillion of assets in the fiscal year 2011 alone (Kahn et el., 2011).
Despite advanced computer trading, experts in TSE claim that although computers changed the way things work, the market mechanism hasn’t changed a bit. Experts agree that computers are merely helping humans to respond to deals more effectively and thus work faster (Nakamura & Hasegawa, 2015).
Both LSE and TSE are the largest players in the Stock Exchange Market. Thousands of deals relating to buying and selling multiple assets, stocks, securities, and shares are conducted daily, and it extends an influence over the most crucial industries and biggest companies all over the world.
Reference List
Kahn, R., Sullivan, E. K., & Stackelberg, N. (2011). London Stock Exchange. Web.
Nakamura, Y., & Hasegawa, T. (2015). Humans Lose Out as Robots Take Tokyo Stock Exchange.Web.