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Highlights
- The market capitalization of the London Stock Exchange’s FTSE100 as of December 2021 stood at GBP 1,911,321 million.
- The first Exchange traded funds launched in 2000 and currently over 1,200 ETFs are listed on the Main Market of the London Stock Exchange.
The London Stock Exchange (LSE) is one of the oldest stock exchanges in the world, where it is the primary marketplace for securities based in London. The Financial Times Stock Exchange (FTSE100) Index is the dominating index of LSE that consist of top 100 companies segregated by market capitalisation. In 2007, the London Stock Exchange merged with the Milan Stock Exchange to become the London Stock Exchange. The total market capitalization of the London Stock Exchange’s FTSE100 as of December 2021 stood at stood at GBP 1,911,321 million.
In 2021, the London city tried recreating its image as an advanced financial hub with flexible rules to woo more and more tech firms and growth-oriented companies. Let’s take a look at the top 5 events that London Stock Exchange witnessed this year:
© 2021 Kalkine Media®
- Launch of Sustainable Bond Segment
The London Stock Exchange launched a dedicated transition bond segment to expand its Sustainable Bond Market and became the first exchange to establish a transition overlay to its existing market components that will enable higher-emitting sectors to access the funds required for transition to low-carbon.
The segment will display notes from the issuer who have prepared a transition framework prepared in accordance with the ICMA Transition Finance Handbook and is committed to the Paris Climate Agreement goal of limiting global temperature rises to 2oC or less above pre-industrial levels. Further, they have to present approved targets to achieve the climate goal and have to manage and disclose related risks in line with standards.
© 2021 Kalkine Media®
The exchange has listed over 260 bonds, of which over half are labeled bonds and other bonds are unlabeled but with minimum 90% of their revenue is generated from green products and services.
The exchange also revealed that it has became the first exchange in the world to commit the target of net zero goals, through the Science Based Targets initiative (SBTi)-led business ambition for 1.5oC.
- FTSE100 biggest fall since March 2020
With the rising cases of new variant in Europe, the FTSE 100 Index, that comprises 100 largest London Stock Exchange listed companies by market capitalization, slumped by 3.64% on 26 November, which was its largest fall since March 2020. The day closed at 7,044, which was 266 points down, wiping off £65 billion. The global stock market headed for their biggest weekly drop, while FTSE 250 fell by 3.2% to 22537.9, Dow Jones fell by 2.8% and the S&P 500 fell by 2.3%.
© 2021 Kalkine Media®
- Exchange Traded Products
The year 2021 has been a great for the Exchange Traded Products of the London Stock Exchange as it accounted almost 23% of its order book turnover and is the leading European center for ETFs. The first Exchange Traded fund was launched in 2000, and currently over 1,200 ETFs are listed on the Main Market of the London Stock Exchange. According to manager of ETPs in the London Stock Exchange Hetal Patel, the last six years has seen 100% growth in the ETPs and in 2021 around 251 new ETPs got listed on the London Stock Exchange as compared to 174 for the same period in 2020
