University of Dhaka

Department of International Business

Course: International Financial Management

Course Code: IB-308

Term Paper On

International Stock Market:

New York Stock Exchange

London Stock Exchange

Prepared by

Zenith

Supervisor

Saiful Islam

Lecturer

Department of International Business

Date of Submission: 17/10/2017

1
 Group Profile
Zenith
SL No. Name ID
1 Md. Nazmul Huda FR-030-028

2 Md. Fayzul Islam 151

3 Nafizur Rahman 172

2
 Letter of Transmittal
17 October, 2017

Saiful Islam

Lecturer

Department of International Business,

University of Dhaka.

Subject: Submission of the Term Paper Report.

Dear Sir,
It gives us immense gratification to submit our Term paper report on International Stock Market
which was assigned to us as a fulfillment of the course International Financial Management.

While making this report we come across many oddities and experienced many pleasant
events. But the valuable experiences we have gained during the period will undoubtedly
benefit us in the years ahead. This report attempts to describe our observations, learnings
and experiences gained in the International Stock Market. Despite several constraints, we
gave our all efforts to make this report a meaningful one.

We have tried sincerely to comprehend and translate our knowledge in writing this term
paper. Our effort will be rewarded only if it adds value to the research literature. We
enjoyed this project work and will be glad to attend any of your queries to clarify our point,
if necessary.

Sincerely yours,

The Members of Group

Zenith

8th Batch

Department of International Business

University of Dhaka

3
 Table of Content

Contents Page No.

Executive Summary i

Part-1 Introduction 1-9

Part-2 Market Specific Discussion 10

New York Stock Exchange 10-20

London Stock Exchange 21-29

Part-3 Recommendation and Suggestions 30-31

References

4
 Executive Summary
The International Financial Market is the place where financial wealth is traded between individuals
or countries. It can be seen as a wide set of rules and institutions where assets are traded between
agents in surplus and agents in deficit and where institutions lay down the rules.

The New York Stock Exchange (abbreviated as NYSE and nicknamed "The Big Board"), is an American
stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the
world's largest stock exchange by market capitalization of its listed companies at US$21.3 trillion as
of June 2017. The average daily trading value was approximately US$169 billion in 2013. The NYSE
trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of
trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main
building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

The NYSE is owned by Intercontinental Exchange, an American holding company that it also lists
(NYSE: ICE). Previously, it was part of NYSE Euronext (NYX), which was formed by the NYSE's 2007
merger with Euronext. NYSE and Euronext now operate as divisions of Intercontinental Exchange.

The London Stock Exchange (LSE) is a stock exchange located in the City of London, England. As of
December 2014, the Exchange had a market capitalization of US$6.06 trillion, making it the third-
largest stock exchange in the world by this measurement and the largest in Europe. The Exchange
was founded in 1801 and its current premises are situated in Paternoster Square close to St Paul's
Cathedral in the City of London. The Exchange is part of the London Stock Exchange Group. London
Stock Exchange is one of the worlds oldest stock exchanges and can trace its history back more than
300 years. London Stock Exchange Group was created in October 2007 when London Stock Exchange
merged with Milan Stock Exchange, Borsa, and Italiana.

5
 Part -1

INTRODUCTION

International Financial Institution and Market

An international financial institution (IFI) is a financial institution that has been established by more
than one country, and hence are subjects of international law. Its owners or shareholders are
generally national governments, although other international institutions and other organizations
occasionally figure as shareholders. The most prominent IFIs are creations of multiple nations,
although some bilateral financial institutions exist and are technically IFIs. The best known IFIs were
established after World War II to assist in the reconstruction of Europe and provide mechanisms for
international cooperation in managing the global financial system.

The International Financial Market is the place where financial wealth is traded between individuals
or countries. It can be seen as a wide set of rules and institutions where assets are traded between
agents in surplus and agents in deficit and where institutions lay down the rules.
The financial market comprises the markets stock market, bond market, currency market,
derivatives market, commodity market and money market, the institutions which work in them with
different aims and functions such as Central Bank, Ministry of Economy and Finance, Monte Titoli,
Borsa Italiana and CONSOB, as well as direct/indirect policies orientated to making the market the
place where the exchange between surplus and deficit units is carried out as efficiently as possible.
The consideration must be given to those connected with monetary, fiscal and more structural
policies, as well as those directly connected with the governance of the market itself.
Governance in the financial market can be defined as a set of rules useful in interconnecting the
agents who operate within it and the institutions. These rules define the market.
Governance rules in a financial market can be defined at both a microeconomic and macroeconomic
level.

Microeconomic rules deal not only with individuals (single money savers, professional agents, and
companies) but also with the market itself and its microstructure. Macroeconomic governance rules
deal with the market as a whole, but they are also strictly connected with policies regulating the

6
market.
At a macroeconomic level, governance is important for the financial market in order to define every
single rule of the trading process: from those which regulate the stock exchange or the Over the
Counter (OTC) trades to those which define who can join the market. Moreover, great importance is
given to the market microstructure, where microstructure is understood as the set of rules that
makes and defines the asset exchange price. This is a main point in allowing the market to function
properly. The liquidity/thickness/depth of the market depends on the price formation rules
according to which the asset is traded off. At a microeconomic level, the steps to trade assets on the
financial market are: listing, trading, and post trading.The latter comprises clearing, settlement and
custody. From the market insiders point of view, each of these steps needs to be defined in order to
conclude the exchange at a time and price previously defined. Each step has its own rules that allow
those who operate in the financial market to establish their own strategy with respect to their
specific expectations. The traded asset returns are linked to the definition of these rules. Each
market has its own rules that deal with the microstructure. Different markets have different liquidity
and this depends on the micro-rules that they themselves have established. These rules are relevant
both for exchange trading and for the OTC trading. Another class of microeconomic governance
rules are those which state, for instance, who can operate in the market and how. Microeconomic
rules also concern the manner in which the institutions themselves operate in the market.
Macroeconomic rules of the financial market have a different task and are linked to the broad-
spectrum policies of the market. These can indicate the required market institution, the market
structure and furthermore its aims and its own monetary and fiscal policies. All these characteristics
make the market unique with respect to the economy in which it works. One of the features of this
uniqueness is market transparency. This characteristic is defined on the basis of (governance) rules,
institutions, agents, and polices connected to it. The more people know how to complete the trading
asset process, the more a market is transparent. In this manner, expectations become
heterogeneous for individuals/agents and, at the same time, they reflect the information at hand,
which is then elaborated depending on the different sell/buy strategies. This leads to the definition
of expectations. Defining the role of expectations in a financial market has a two-fold purpose. The
first is defined at a macroeconomic level. Expectations are defined with respect to the policies and
rules.
This leads to defining the sell/buy strategies on the basis of the role that, for instance, inflation will
have in the subsequent period t+1 given the policies/rules defined in t. This kind of expectation may
vary depending on the discretion that exists in defining the rules, not only at a macroeconomic level
but also at a microeconomic one. The second objective is microeconomic. Agents formulate their
expectations to predict asset price variations in order to determine the asset returns. This point
leads back to the liquidity concept previously introduced. The different level of liquidity in the
trading process determines a different formulation of expectations. In the same way, the diverse
discretion utilized in setting macro-economic rules determines a different formulation of the
Macroeconomic rules, as previously defined, are connected to different monetary and fiscal policies.
The financial market is subjected to policies that depend mostly on the regulating institutions. At the
same time, institutions are responsible for defining rules and for enforcing the application of these
rules in the market. The institutions determine the rules that in turn define their field of action.
Individuals who operate in one market have to follow these rules but, at the same time, their
decision is based on the rules that a given market has set itself. Transparency, liquidity, and
expectations help individuals to choose the market in order to maximize their own utility.

7
The financial market examined in this manner is an extremely complex system in which rules,
individuals and institutions interact. This complexity increases even more in time and space. In time,
financial markets cover an increasingly important role in the financial saving mediation of agents at
an international as well as at a national level. In space, agents have instruments at their disposal that
have become increasingly more complicated and specific. These instruments are utilized through the
markets of reference (stock market, bond market, currency market, derivatives market, commodities
market, money market) that are a fundamental part of the financial market. Each market has its own
characteristics that in turn define the contexts in which agents operate on the basis of the risk
associated to them.

Classification of Financial Market

Money Market

The money market is a segment of the financial market in which financial instruments with high
liquidity and very short maturities are traded. The money market is used by participants as a means
for borrowing and lending in the short term, from several days to just under a year. Money market
securities consist of negotiable certificates of deposit (CDs), banker's acceptances, U.S. Treasury bills,
commercial paper, municipal notes, Eurodollars, federal funds and repurchase agreements (repos).
Money market investments are also called cash investments because of their short maturities.

The money market is used by a wide array of participants, from a company raising money by selling
commercial paper into the market to an investor purchasing CDs as a safe place to park money in the
short term. The money market is typically seen as a safe place to put money due the highly liquid
nature of the securities and short maturities. Because they are extremely conservative, money
market securities offer significantly lower returns than most other securities. However, there are
risks in the money market that any investor needs to be aware of, including the risk of default on
securities such as commercial paper.

Capital Markets

A capital market is one in which individuals and institutions trade financial securities. Organizations
and institutions in the public and private sectors also often sell securities on the capital markets in
order to raise funds. Thus, this type of market is composed of both the primary and secondary

8
markets.

Any government or corporation requires capital to finance its operations and to engage in its own
long-term investments. To do this, a company raises money through the sale of securities - stocks
and bonds in the company's name. These are bought and sold in the capital markets.

Cash or Spot Market

By Investing in the cash or "spot" market is highly sophisticated, with opportunities for both big
losses and big gains. In the cash market, goods are sold for cash and are delivered immediately. By
the same token, contracts bought and sold on the spot market are immediately effective. Prices are
settled in cash "on the spot" at current market prices. This is notably different from other markets, in
which trades are determined at forward prices.

The cash market is complex and delicate, and generally not suitable for inexperienced traders. The
cash markets tend to be dominated by so-called institutional market players such as hedge funds,
limited partnerships and corporate investors. The very nature of the products traded requires access
to far-reaching, detailed information and a high level of macroeconomic analysis and trading skills.

Derivatives Markets
The derivative is named so for a reason: its value is derived from its underlying asset or assets. A
derivative is a contract, but in this case the contract price is determined by the market price of the
core asset. If that sounds complicated, it's because it is. The derivatives market adds yet another
layer of complexity and is therefore not ideal for inexperienced traders looking to speculate
However, it can be used quite effectively as part of a risk management program.

Examples of common derivatives are forwards, futures, options, swaps and contracts-for-difference
(CFDs). Not only are these instruments complex but so too are the strategies deployed by this
market's participants. There are also many derivatives, structured products and collateralized
obligations available, mainly in the over-the-counter (non-exchange) market, that professional
investors, institutions and hedge fund managers use to varying degrees but that play an insignificant
role in private investing.

9
Primary Markets
A primary market issues new securities on an exchange. Companies, governments and other groups
obtain financing through debt or equity based securities. Primary markets, also known as "new issue
markets," are facilitated by underwriting groups, which consist of investment banks that will set a
beginning price range for a given security and then oversee its sale directly to investors.

The primary markets are where investors have their first chance to participate in a new security
issuance. The issuing company or group receives cash proceeds from the sale, which is then used to
fund.

Secondary Market

The secondary market is where investors purchase securities or assets from other investors, rather
than from issuing companies themselves. The Securities and Exchange Commission (SEC) registers
securities prior to their primary issuance, then they start trading in the secondary market on the
New York Stock Exchange, Nasdaq or other venue where the securities have been accepted for
listing and trading.

The secondary market is where the bulk of exchange trading occurs each day. Primary markets can
see increased volatility over secondary markets because it is difficult to accurately gauge investor
demand for a new security until several days of trading have occurred. In the primary market, prices
are often set beforehand, whereas in the secondary market only basic forces like supply and demand
determine the price of the security.

Secondary markets exist for other securities as well, such as when funds, investment banks or
entities such as Fannie Mae purchase mortgages from issuing lenders. In any secondary market
trade, the cash proceeds go to an investor rather than to the underlying company/entity directly.

The OTC market

10
The over-the-counter (OTC) market is a type of secondary market also referred to as a dealer
market. The term "over-the-counter" refers to stocks that are not trading on a stock exchange such
as the NASDAQ, NYSE or American Stock Exchange (AMEX). This generally means that the stock
trades either on the over-the-counter bulletin board (OTCBB) or the pink sheets. Neither of these
networks is an exchange; in fact, they describe themselves as providers of pricing information for
securities. OTCBB and pink sheet companies have far fewer regulations to comply with than those
that trade shares on a stock exchange. Most securities that trade this way are penny stocks or are
from very small

International Stock Market

MNCs and domestic firms commonly obtain long-term funding by issuing stock locally. Yet, MNCs
can also attract funds from foreign investors by issuing stock in international markets. The stock
offering may be more easily digested when it is issued in several markets. In addition, the issuance of
stock in a foreign country can enhance the firms image and name recognition there.

The locations of MNCs operations can influence the decision about where to place its stock, as the
MNC may desire a country where it is likely to generate enough future cash flows to cover dividend
payments. The stocks of some US based MNCs are widely to have easy access to some U.S. stocks.

MNCs need to give their stock listed on an exchange in any country where they issue shares.
Investors in a foreign country are only willing to purchase stock if they can easily sell their holdings
of the stock locally in the secondary market. The stock is denominated in the currency of the country
where it is placed.

Basic Features of International Stock Market

Stocks are an important component of retirement plans and college education savings plans.
Information technology has brought the markets closer to investors. You can find detailed financial
information of listed companies online, usually at no cost. Online brokers have made stock trading
simple and inexpensive. However, you need to be aware of some of the market characteristics to
manage your investments effectively.

Risk/Return

11
Unlike U.S. Treasury bonds, stocks are not risk-free assets. Changes in a company's economic and
competitive environment affect sales and profits, which determine stock price performance. Adverse
economic changes could include rising unemployment, which result in lower consumer spending,
and inflation, which increases operating costs. Companies that have a strong competitive position in
their respective industries generate positive returns for their shareholders. Some companies pay
regular cash dividends to shareholders, which is attractive for pensioners living on fixed income.

Volatility

Stock markets are volatile. Price changes of several percentage points within a short period are
common. Markets usually react to news events, such as corporate earnings, government economic
reports and geopolitical events. Software algorithms and automated trading strategies, along with
the increased participation of investors, have increased the complexity and volatility of stock
markets. You can hedge against market volatility by diversifying your portfolio. Successful investors
ignore short-term fluctuations because stock prices reflect the underlying fundamental

Selection

Markets offer a wide selection of stocks to suit different risk tolerances and financial objectives.
Aggressive investors can buy the stocks of newly listed companies and growth companies. Although
these stocks are riskier than the stocks of established companies, you could benefit from significant
price appreciation. Conservative investors could buy dividend-paying stocks, which generate regular
income and some potential for price appreciation. You can find stocks from major industry sectors
and sub-sectors within each industry. For example, you could invest in microprocessor and software
companies within the technology industry and in department stores and specialty retailers within
the retail industry.

Liquidity

Stock markets provide liquidity because they bring together investors and businesses from all over
the world. Liquidity results in narrow bid-ask spreads, which means small differences between what
buyers are offering and what sellers are asking for stocks. The result is order fills at favorable prices.

12
Information technology plays a role by increasing the speed at which the markets execute trades and
disseminate information to investors and other market participants.

Regulated

Regulations are necessary for fair and efficient markets. The U.S. Securities and Exchange
Commission regulates the U.S. securities industry, along with the New York Stock Exchange and
other markets. Securities laws ensure that investors and other market participants have access to
the necessary information in a timely manner.

International Stock Exchange

International Stock Exchange (ISE) is an electronic options exchange that was launched in 2000. The
exchange provides investors with greater liquidity and the ability to execute transactions at a much
faster rate than the open-crying trading floor that has historically been the basis for options trading.

Some prominent stock exchanges are New York Stock Exchange, London Stock Exchange, NASDAQ,
HongKong Stock Exchange, Shanghai Stock Exchange.

List of Selected Stock Exchange

1. New York Stock Exchange

2. London Stock Exchange

Reasons for Selecting

The New York Stock Exchange is the top stock market in the world. It is heworld's largest
stock exchange by market capitalization of its listed companies at US$21.3 trillion as of June
2017. The NYSE has some Specialties.

13
 - The auction process is critical

- It is a market maker

- It executes trades at a designated trading post

- It acts as an auctioneer by quoting fair bid and asked prices

- It acts as a catalyst matching buyers and sellers

- It stabilizes prices by ensuring that prices move smoothly with minimal fluctuations.

The London Stock Exchange is the largest exchange in Europe.It is one of the worlds oldest
stock exchanges and can trace its history back more than 300 years. London Stock Exchange
Group was created in October 2007 when London Stock Exchange merged with Milan Stock
Exchange.

The necessary information is available for the both markets. So it intended us to choose the markets.
As they are the leading stock exchanges in the world capital market, they use the modern
technology and systems that make chance to know more about the stock market. Their potentiality
is high comparative to other markets.

14
 Part-2

Market Specific Discussion

New York Stock Exchange

Market at a Glance

The New York Stock Exchange is an American stock exchange located at 11 Wall Street, Lower
Manhattan, New York City, New York.

Address: 11 Wall St, New York, NY 10005

Founded: March 8, 1817, Wall Street, New York City, New York, United States

Customer service: +1 212-896-2830

Parent organizations: NYSE Euronext Inc., Intercontinental Exchange

Subsidiaries: Securities Industry Automation Corporation,

Type: Stock exchange

Location: New York City, New York, U.S.

Founded: March 8, 1817, Wall Street, New York City

Owner: Intercontinental Exchange (Owner)

15
Key people: Jeffrey Stretcher (Chairman)

Currency: United States Dollar

No. of listings: 2,400

Market cap: US$19.3 trillion[3]

Volume: US$20.161 trillion (2011)

Dow Jones Industrial Average

Indices:
S&P 500NYSE Composite

Website: nyse.com

Overview of the market

The New York Stock Exchange (abbreviated as NYSE and nicknamed "The Big Board"), is an American
stock exchange located at 11 Wall Street, Lower Manhattan, New York City, New York. It is by far the
world's largest stock exchange by market capitalization of its listed companies at US$21.3 trillion as
of June 2017. The average daily trading value was approximately US$169 billion in 2013. The NYSE
trading floor is located at 11 Wall Street and is composed of 21 rooms used for the facilitation of
trading. A fifth trading room, located at 30 Broad Street, was closed in February 2007. The main
building and the 11 Wall Street building were designated National Historic Landmarks in 1978.

The NYSE is owned by Intercontinental Exchange, an American holding company that it also lists
(NYSE: ICE). Previously, it was part of NYSE Euronext (NYX), which was formed by the NYSE's 2007
merger with Euronext. NYSE and Euronext now operate as divisions of Intercontinental Exchange.

The NYSE has been the subject of several lawsuits regarding fraud or breach of duty and in 2004 was
sued by its former CEO for breach of contract and defamation.

16
 Location of the market

11 Wall St, New York, NY 10005

Ranking of the market in the world context:

NYSE is ranked 1st among all the markets in the world.

Year of foundation / establishment:

It is founded March, 8 1817, Wall Streat New York

Key People or personnel involved:

Key people Jeffrey Sprecher (Chairman)

Number of listing firms:

Number of companies 2400

Historical highlights:

In 1792, NYSE acquires its first traded securities

In 1817, the constitution of the New York Stock and Exchange Board is adopted, it
had also been established by the New York brokers as a formal organization
In 1865, New York Gold Exchange was acquired by the NYSE.
In 1867, Stock tickers were first introduced.
In 1885, the 400 NYSE members in the Consolidated Stock Exchange withdraw from
Consolidated over disagreements on exchange trade areas.
In 1896, DJIA first published in The Wall Street Journal.

17
 In 1903, NYSE moves into new quarters at 18 Broad Street.
In 1906, DJIA exceeds 100 on January 12.
In 1907, Panic of 1907.
In 1909, Trading in bonds.
In 1914, World War I causes the longest exchange shutdown: four months, two
weeks; re-opening December 12 brings the largest one-day percentage drop in the
DJIA (24.4%).
In 1915, Basis of quoting and trading in stocks changed from % of par value to
dollars.
In 1920, a bomb exploded on Wall Street outside the NYSE building. Thirty killed and
over 100 injured.
In 1929, central quote system established; Black Thursday, October 24 and Black
Tuesday, October 29 signal the end of the Roaring Twenties bull market.
In 1943, trading floor is opened to women.
In 1949, the longest (eight-year) bull market begins.
In 1954, DJIA surpasses its 1929 peak in inflation-adjusted dollars.
In 1956, DJIA closes above 500 for the first time on March 12.
In 1966, NYSE begins a composite index of all listed common stocks. This is referred
to as the "Common Stock Index" and is transmitted daily. The starting point of the
index is 50. It is later renamed the NYSE Composite Index.
In 1967, Muriel Siebert becomes the first female member of the New York Stock
Exchange.
In 1967, protesters led by Abbie Hoffman throw mostly fake dollar bills at traders
from gallery, leading to the installation of bullet-proof glass.
In 1970, Securities Investor Protection Corporation established.
In 1971, NYSE incorporated and recognized as Not-for-Profit organization.
In 1972, DJIA closes above 1,000 for the first time on November 14.
In 1977, foreign brokers are admitted to NYSE.
In 1980, New York Futures Exchange established.
In 1987, Black Monday, October 19, sees the second-largest one-day DJIA
percentage drop (22.6%) in history.

18
 In 1991, DJIA exceeds 3,000.
In 1995, DJIA exceeds 5,000.
In 1996, real-time ticker introduced.
In 1999, DJIA exceeds 10,000 on March 29.
In 2000, DJIA peaks at 11,722.98 on January 14; first NYSE global index is launched
under the ticker NYIID.

Security after the September 11 attacks

In 2001, trading in fractions (n16) ends, replaced by decimals (increments of $0.01,
see Decimalization); September 11 attacks occur causing NYSE to close for four
sessions.
In 2003, NYSE Composite Index relaunched and value set equal to 5,000 points.
In 2006, NYSE and ArcaEx merge, creating NYSE Arca and forming the publicly
owned, for-profit NYSE Group, Inc.; in turn, NYSE Group merges with Euronext,
creating the first trans-Atlantic stock exchange group; DJIA tops 12,000 on October
19.
In 2007, US President George W. Bush shows up unannounced to the Floor about an
hour and a half before a Federal Open Market Committee interest-rate decision on
January 31;[52] NYSE announces its merger with the American Stock Exchange; NYSE
Composite closes above 10,000 on June 1; DJIA exceeds 14,000 on July 19 and closes
at a peak of 14,164.53 on October 9.
In 2008, DJIA loses more than 500 points on September 15 amid fears of bank
failures, resulting in a permanent prohibition of naked short selling and a three-week
temporary ban on all short selling of financial stocks; in spite of this, record volatility
continues for the next two months, culminating at 5-year market lows.
In 2009, DJIA closes at 6,547.05 on March 9 reaching a 12-year low; DJIA returns to
10,015.86 on October 14.
In 2013, DJIA closes above 2007 highs on March 5; DJIA closes above 16,500 to end
the year.
In 2014, DJIA closes above 17,000 on July 3 and above 18,000 on December 23.
In 2015, DJIA achieved an all-time high of 18,351.36 on 19 May.

19
 In 2015, DJIA dropped over 1,000 points to 15,370.33 soon after open on August 24,
2015, before bouncing back and closing at 15,795.72, a drop of over 669 points.
In 2016, DJIA hits an all-time high of 18,873.6.
On Wednesday, January 25, 2017, the DJIA reaches 20,000.00.
In August 2017 the DJIA reaches 22,000.00

Market capitalization

US$19.3 trillion

Total trading value & volume:

US$20.161 trillion (2011)

Products Offering:

Traded Products:

NYSE Equities, Options, ETFs & Bonds

The robust NYSE markets are home to a diverse set of listed companies, traders and brokers around
the world. We use all-electronic, block, anonymous, and hybrid trading models to support our
different communities, which has resulted in more than a third of the world's cash equity trade
volume being routed through us. Our global trading platform is designed to fluidly match orders
across all product types including equities, options, ETPs and bonds, and is the most liquid trading
venue in the world for equities products.

Trading hours

Pre-Opening Session: 7:00 am

Orders can be entered and will be queued until the Opening Auction at 9:30 AM ET.

20
Core Trading Session: 9:30 AM TO 4:00 pm

9:30 AM ET - Core Open Auction

3:45 PM to 4:00 PM ET - 123(c) Closing Imbalance Period
4:00 PM ET - Closing Auction

NYSE American Equities

Trading Hours

Pre-Opening Session: 6:30 AM

Orders can be entered and will be queued until the Early Open Auction at 7:00 AM
ET.

Early Trading Session: 7:00 AM to 9:30 AM ET

6:59 AM to 7:00 AM ET - Early Open Auction Imbalance Freeze Period

7:00 AM ET - Early Open Auction
9:29:55 AM to 9:30 AM ET - Core Open Auction Imbalance Freeze Period

Core Trading Session: 9:30 AM TO 4:00 PM ET

9:30 a.m. ET - Core Open Auction

3:50 p.m. to 4:00 p.m. ET - Closing Auction Imbalance Freeze Period
4:00 p.m. ET - Closing Auction

Late Trading Session: 4:00 PM to 8:00 PM ET

Commission & fees

NYSE Trading Fees

21
LIQUIDITY
DESCRIPTION TAPE A
INDICATOR

1 Taking Liquidity $0.00275 $0.0030 if Adding ADV<250,000

1 Floor Take $0.0024

1 SLP Take $0.00275

1 DMM Take $0.00275

2 Providing $(0.00140) $(0.0000) If Non-Displayed

Adding ADV>0.35% Tape A CADV and

2 Providing Tier 3 $(0.00180) MocLoc>0.05%. $(0.0000) if Non-
Displayed

Adding ADV>0.75% Tape A CADV and

2 Providing Tier 2 $(0.0020) MocLoc>0.10% $(0.0000) if Non-
Displayed

Adding ADV>1.10% Tape A CADV and

2 Providing Tier 1 $(0.0022) MocLoc>0.12% $(0.0000) if Non-
Displayed

$(0.0022) if Floor provide >0.33%

Tape A CADV, $(0.0020) if Floor
2 Floor Provide $(0.00190) provide >0.07% Tape A CADV,
$(0.0022) if member is at providing
Tier 1, $(0.0020) if Tier 2

Adding ADV> 0.20% Tape A CADV,

2 SLP Provide $(.0014/23) otherwise (.0000/.0006) If Non-
Displayed

Adding ADV > 0.45% Tape A CADV

2 SLP Tier 2 $(.0026)
$(.0009) if Non-Displayed

Adding ADV> 0.60% Tape A CADV,

2 SLP Tier 1A $.(00275)
$(.00105) if Non-Displayed

2 SLP Tier 1 $(.0029) Adding ADV> 0.90% Tape A CADV,

22
LIQUIDITY
DESCRIPTION TAPE A
INDICATOR

$(.0012) if Non-Displayed

Plus credit per issue under 1.5 million

$(.0015/ CADV in issues meeting quoting
2 DMM Provide
27/31/34/35) requirements as listed in the fee
schedule

Blended or Broker d-
3 Quotes (except when $0.00050 $.00150 if > 500K ADV
providing)

5 Opening Executions $0.0010 $30k Monthly Cap

Electronic Executions
6 at the Close - Not No Charge $.0005 if > 750K ADV
MOC/LOC

Charge for market at-

$0.0008 @ 0.375% of Tape A ADV,
7 the-close and limit at- $0.0011
$0.0007 @ 0.575% of Tape A ADV
the-close orders

$0.0003 credit RLPs meeting quoting

Retail Price $0.0003 credit requirements, RLPs in the first two
8
Improvement Orders / $0.0003 fee months, and non-RLPs with >500K
ADV in retail provide

For RMO retail orders that take

Retail Orders from
9 No Charge against RPIs, otherwise regular
RMOs taking liquidity
take/route fees apply

Midpoint Passive
11 Liquidity Order taking $0.0030 Liquidity tag returned in Tag 9426
liquidity

Midpoint Passive $(.00275) if Adding ADV>0.14% Tape

12 Liquidity Order $(0.0010) A CADV. $(.0025) if Adding
providing liquidity ADV>0.03% Tape A CADV,. Liquidity

23
LIQUIDITY
DESCRIPTION TAPE A
INDICATOR

tag returned in Tag 9426

For orders that add liquidity and are

Retail Orders that add designated as retail (i.e., orders that
13 $(0.0030)
liquidity satisfy the Retail Modifier
requirements of Rule 13)

For MPL orders that take liquidity and

Retail MPL orders that are designated as retail (i.e., orders
14 $.0010
take liquidity that satisfy the Retail Modifier
requirements of Rule 13)

15 Closing Offset No Charge

Agency transactions
between floor brokers
NA $(0.0006)
in the crowd or a
broker cross

Alpha Routing fee $0.00300

Trading guidelines & information

Crossing Session (Program Trades)

The accommodation the trading program baskets of at least 15 NYSE securities regardless of
value. Members that have either facilitated a basket trade or have paired two customers'
baskets can submit aggregate information to the Exchange for immediate execution.

Reports of execution are available via the web-based electronic platform (EFP) shortly after
the trade is entered. At 6:30 p.m., the NYSE prints the aggregate information of all baskets
executed in this session to the consolidated tape. On the third day following the trade date
(T+3), individual component stocks that were executed as part of a basket trade are printed
in aggregate form in the NYSE Daily Sales Report.

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 Routing Policy

NYSE, NYSE American and NYSE Arca (the Exchanges) route orders to away markets
through either an Exchange affiliated router or one or more third-party routing brokers
pursuant to NYSE and NYSE American Rule 17 and NYSE Arca Rule 7.45. Each third-party
routing broker used by the Exchanges has its own policies and procedures with respect to
the manner in which it may round or truncate execution prices that extend beyond four
decimal places. Some third-party routing brokers may round to the fourth decimal place,
while others may truncate to the fourth decimal place, before returning executions to the
Exchanges. With the exception of routing in BRK A, those policies and procedures are
established by the third-party routing broker and are not established by or at the request of
the Exchanges and are not overseen by the Exchanges. In the case of BRK A, all executions
returned in more than two decimal places will be truncated to two decimal places.

Floor Information

The New York Stock Exchange trading floor is being transformed into a 21st century trading
environment with improved design, technology and a network better capable of supporting
all of a firm's trading applications.

The innovative next-generation trading floor makes it much easier for firms to access all
markets from the NYSE while still being able to access the NYSE point of sale where brokers
can interest designated market makers directly in the auction.

Brokers can now represent customers more effectively and efficiently, with better access to
trading information and market centers. The new environment has a more robust network
and additional desktop functionality, which improves a broker's ability to trade in both the
physical and electronic components of our market. Traders on the floor and "upstairs" off-
exchange desks can now operate together.

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 London Stock Exchange

Market at a Glance

The London Stock Exchange (LSE) is a stock exchange located in the City of London, England. The
Exchange was founded in 1801 and its current premises are situated in Paternoster Square close to
St Paul's Cathedral in the City of London. The Exchange is part of the London Stock Exchange Group.

Address: 10, Paternoster Row, London EC4M 7LS, UK

Customer Service: +44 20 7797 1000

CEO: Nikhil Rathi

Parent organization: London Stock Exchange Group

Type: Stock exchange

Location: London, England, UK

Owner: London Stock Exchange Group

Key people: Donald Brydon (Chairman), Xavier Rolet (CEO)

Currency: Pound sterling

Market cap: 6.06 trillion GBP (Dec 2014)[1]

Volume: 1.16 trillion GBP (Dec 2014)

Website: www.londonstockexchange.com

Overview of the Market

The London Stock Exchange (LSE) is a stock exchange located in the City of London, England. As of
December 2014, the Exchange had a market capitalization of US$6.06 trillion, making it the third-
largest stock exchange in the world by this measurement and the largest in Europe. The Exchange

26
was founded in 1801 and its current premises are situated in Paternoster Square close to St Paul's
Cathedral in the City of London. The Exchange is part of the London Stock Exchange Group. London
Stock Exchange is one of the worlds oldest stock exchanges and can trace its history back more than
300 years. London Stock Exchange Group was created in October 2007 when London Stock Exchange
merged with Milan Stock Exchange, Borsa, and Italiana.

Location of London Stock Exchange

10 Paternoster Row, London EC4M 7LS, UK

World Rank of LSE

London Stock Exchange is the fifth in the world ranking made by Business Insider on 5 September
2016

Year of Establishment

It is founded in 1571; 446 years ago. The Royal Exchange1801; 216 years agoLondon Stock Exchange.

Historical Highlights
In 1571, It was opened by Elizabeth I of England.
In 1669, it was rebuilt and re-established in
in 1697, Parliament brought out an act that levied heavy penalties, both financial
and physical to those brokering without a license.
After the Seven Years' War (17561763), trade at Jonathan's Coffee-House boomed
again.
In 1773, Jonathan, together with 150 other brokers, formed a club and opened a
new and more formal "Stock Exchange" in Sweeting's Alley.
In February 1812, the General Purpose Committee confirmed a set of
recommendations, which later became the foundation of the first codified rule book
of the Exchange.
In 1836, both the Manchester and Liverpool stock exchanges were opened.
By June 1853, both participating members and brokers were taking up so much
space that the Exchange was now uncomfortably crowded and continual expansion.
In March 1854, the new brick building inspired from the Great Exhibition stood
ready.

27
 On 4 January 1915 under tedious restrictions, as transactions were to be in cash
only. Due to the limitations and challenges on trading brought by the war, almost a
thousand members quit the Exchange between 1914 and 1918. When peace
returned in November 1918, the mood on the trading floor was generally cowed. In
1923 the Exchange received its own coat of arms.
In 1937, officials at the Exchange used their experiences from the First World War to
draw up plans on how to handle a new war situation.
On the night of 29 December, 1940 one of the greatest fires in Londons history took
place.
After decades of uncertain if not turbulent times, business boomed for the stock
market in the late 1950s.
In 1973, marked the year of changes for the Stock Exchange.
On 20 July 1990 a bomb planted by the IRA exploded in the men's toilets behind the
visitors' gallery.
The Stock Exchange in Paternoster Square was the initial target for the protesters of
Occupy London on 15 October 2011.

Market capitalization

It provides access to capital for domestic and international businesses and efficient electronic
platforms for secondary market trading of equities, bonds and derivatives.

Primary Markets
Main types of revenue

Admission fees for initial listing or raising further capital

Annual fees for securities traded on our markets
Customer profile

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 Companies from more than 60 countries around the world have come to our markets to raise
money for growth, together with issuers of bonds, ETFs and other instruments

Highlights

134 new companies joined our markets in the year (2015: 176)

Secondary Markets
Fees based on value traded (UK equities) or number of trades or contracts (Italian equities,
retail bonds and derivatives)

UK cash equity value traded increased by 4%

Borsa Italiana cash equity number of trades up 6%
Turquoise average daily value traded increased by 26%

New products launched to meet post MiFID II trading requirements. Banks and brokersare trading
worldwide on the Groups equities, derivatives and fixed income trading platform.

Primary Market Statistics

London Stock Exchange factsheets are published every month. By clicking on the headings
below you can find the latest factsheets that have been published

Main Market statistics

It contains details of listings on the Main Market for both UK and international companies.
This includes money raised, market capitalization at issue, country of incorporation, FTSE
group and further issues during the month.

AIM statistics

29
It contains details of UK and international companies on AIM, including money raised, market
capitalization at issue, country of incorporation, FTSE group and further issues during the month.
This also includes total turnover on AIM by bargains, volumes and value traded.

New and Further Issues

Detailed statistics on UK and International companies admitted to the Main Market, Aim, PSM and
SFM.

Products and services

Products Offering:

The Real time market data service provides all the activity of the London Stock Exchange
markets, live, as it happens. This section provides more details on the different levels of data
available.
UnaVista is a global, hosted platform for all matching, validation & reconciliation needs.
UnaVista offers a range of business solutions including Post-Trade Services, Data Solutions &
Reconciliations.
Every second of the trading day the London Stock Exchange generates masses of information
ranging from data on individual trades and share price movements to company
announcements.

Trading services

Our trading services are designed to maximize liquidity in the stocks traded on them.

Target2-Securities

30
View articles and analysis discussing industry developments, as well as reference materials and
details of events related to the T2S project.

Connectivity

The Exchange currently offers several types of connectivity with varying levels of management and
performance. This section provides more information about connecting to the Exchange.

Exchange Hosting
Customer Managed Connectivity (CMC)
Extranex
Network Service Providers (NSPs)
Vendor Access Network
Software Houses
GATELab

RNS

RNS is the London Stock Exchange's regulatory and financial communications channel for companies
to communicate with the professional investor. The RNS Submit client interface provides the most
advanced and effective financial disclosure tool for companies and their advisers. It has greatly
improved the process for uploading announcements to RNS and converting them to a market-ready
format.

-Features and benefits

An overview of the main features and benefits of the system

-RNS Submit demo

The demo will show you the step-by-step process of making an announcement submission, along
with key features and functionality.

-Documents and guides

31
Download key RNS documents such as the service guide, good formatting guide, agreement and
FAQs

Shortcuts
-Business days
-eContracts
-Prices and Policies

Generate Global Visibility

The London Stock Exchanges Annual Reports Service will build awareness for your company through
a global network of media partners reaching 100 million individual investors.

The Annual Reports Service puts your companys information in the hands of interested investors
while helping you maximize the efficiencies of your IR budget.

Latest service announcements

11- Oct -2017 - CDS- 001/11102017 -Millennium Exchange and Group Ticker Plant
Customer Development Service Maintenance Day - Tuesday 17 October 2017
6- Oct -2017 - Live - 001 - 06102017 - London Stock Exchange - LSE modifies Liquidity
Taker Scheme for Equities Package 1 - Proprietary Trading Flow effective 01Nov2017
5- Oct -2017 - CDS - 05102017 - London Stock Exchange - Customer Dress Rehearsal
Guide - 7 October 2017

Technical library

Technical specifications
Customer testing services
Technical guidance notes
Service announcements

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 Technical user group

Events and Studios - Venue hire

Events and Studios on the first floor of the Exchange is a purpose-built, broadcast and event
venue in the heart of the City.

Ideally situated at Paternoster Square makes the space a premier venue for announcements,
conferences or simply entertaining in style.

Trading hours:

Core Trading Session: 9:30 AM TO 4:00 PM ET

Commission & fees

Issuer Services Fees

Admission fees are payable on all applications for trading securities on the Exchange, based on the
market value of those securities at the time of application. Two different fee scales are applied for
admission fees one for new companies joining the market and the other for further issues of
securities by companies already admitted to trading.

Annual fees are payable by all companies which have either equity securities or certificates
representing shares admitted into trading.

We provide a fee calculator designed to help calculate the admission and annual fees for equity and
certificates representing shares admitted to trading on the Exchange.

Trading Services Fees

Transaction and Exchange charges relate to trades being executed on the Exchange - orders
placed/deleted and trades matched by the Exchange's trading system. Market Maker charges apply
to market makers registered to make a two way price.

33
 Borsa Italiana Fees

Trading Price List for equities and derivatives contains information on the pricing packages available.

Listing fees provides detail on admission and half yearly fees for shares, bonds, warrants, securitised
derivatives and UCITS.

Routing Policy

Responding to the MiFID II requirement of publishing trades to the market, TRADEcho has launched
the Smart Report Router (SRR).

The SRRs configuration will allow customers to:

Determine if and when the buy/sell-side counterparty should publish the trade

Recommendations & Suggestions

Bangladesh is middle income country. The stock market is formed first in 1956 before the birth of
the country. Though the stock market in Bangladesh has passed a long period, the growth is not
satisfactory. It could not take place in the global stage and is not apt to compete with the global
stock exchange market. The financial market in Bangladesh faces many problems. There having lack
of infrastructure and physical facilities and existence of only dealer-broker-members. The market
dominated largely by unsophisticated investors. The NYSE trades in a continuous auction format,
where traders can execute stock transactions on behalf of investors. It also has Lack of diversity in
products' availability in the market and inefficient capital marketboth operational and
informational. Because of corruption, the foreign investors do not want to invest in Bangladesh.
Sometimes, the local investors face same types of confusion that creates problem in the capital
market. Most of the people are not aware of the share market because of lack of information
availability. And sometimes the share market collapse when the political influence. That is the main
problems. Thats why people are not interested to invest in the share market of Bangladesh. To
compete in the international market the Bangladeshi stock market should remove such kinds of
problems. The regulatory body can take some steps to recover the problems. They can insure
information availability. Customers in the NYSE can now send orders for immediate electronic
execution or route orders to the floor for trade in the auction market. Bangladesh auction market
can initiate electronic auction market to compete with the global exchange market. This market
facilitates the raising of capital through the issue of specialist debt securities or depositary receipts
(DRs) to professional investors. This can be a good initiative if it is implemented in Bangladesh.

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