Did you know there were regional stock exchanges in the UK?

As the number of online traders continues to rise, many of those new to investment will be unaware that the UK originally had several regional stock exchanges. They were more focused on regional industries and investors, as opposed to the broader appeal of the London Stock Exchange. Still, they did play a significant role in the UK financial sector.

 

While many regional stock exchange buildings survive, they have been converted into offices and retail premises. A far cry from the busy, bustling days of years gone by!

 

Regional stock exchanges in the UK

 

The world of the modern online trader is as far removed from the structure and setup of historic regional stock exchanges as possible. Everything changed with Big Bang, although in reality, the growing reputation of London was already impacting trading volumes and activity in many of the leading regional stock exchanges.

 

The following is a summary of some of the more prominent regional stock exchanges of the day:-

 

Manchester stock exchange

 

In its heyday, Manchester was the centre of the UK cotton industry and boasted a vibrant and active local stock exchange. Some additional industries prominent on the exchange included insurance, mining and manufacturing. The first exchange was said to have opened in 1836, later moving to a purpose-built property in 1906, which cost £86,000 to build.

 

In the 1960s, the Manchester Exchange became part of the Northern Stock Exchange, which merged with the London Stock Exchange in 1973. While this briefly led to the computerisation of the Manchester trading floor, shortly after, it was closed, and all business was absorbed into the London Stock Exchange.

 

Birmingham stock exchange

 

One of the more vibrant regional stock exchanges of the day, the Birmingham Stock Exchange, opened in 1845, but like so many, it was closed in 1986, a victim of the Big Bang. Initially focused on manufacturing, mineral extractors and railway companies, it was an essential element of the local business community, allowing companies to raise finance.

 

As with many of the regional stock exchanges, there were also additional markets focused on commodities such as iron and steel, with the corn exchange situated initially in the Bull Ring. While these would have been modern-day fast-moving markets at the time, compared to the facilities available to online traders today, it is like night and day.

 

Glasgow stock exchange

 

Scotland has a strong history in finance and banking, something which was epitomised by the Glasgow Stock Exchange, which was founded in 1844. As London's presence grew, it was merged with the London Stock Exchange in 1973 and closed down. Online traders today find it difficult to appreciate life outside London and the broader UK financial sector!

 

In recent years, there has been a movement to create an independent Scotland stock exchange as the Scottish independence movement continues to grow. While this would be an electronic trading platform, perfect for the modern-day online trader, many early attempts have failed. Will Scotland ever boast its own independent stock exchange again?

 

Edinburgh stock exchange

 

While local trading can be traced back to around 1825, the Edinburgh Stock Exchange was not officially established until 1844. As we touched on above, Scotland has a strong history in financial services, and the creation of the Edinburgh Stock Exchange coincided with the establishment of the Society of Accountants and Actuarial Society of Edinburgh.

 

In 1964, Edinburgh, Glasgow, Aberdeen, and Dundee stock exchanges merged to create the Scottish stock exchange, although localised trading continued. The Edinburgh exchange accounted for trading in three-quarters of Scottish bank shares until the Scottish stock exchange was closed in 1973. Edinburgh still has a strong financial industry, but as online traders know, all share trading has been moved to London.

 

Additional regional stock exchanges

 

In years gone by, the UK was littered with regional stock exchanges, including the likes of Dundee and the Channel Islands. Often focused on local industries, they were an important stepping stone to what we now know as the modern-day London Stock Exchange. As an online trader, it is difficult to comprehend the considerable change in trading facilities or that regional stock exchange trading was cutting-edge in its day.

 

Summary

 

The number of online traders continues to rise, reflecting the ease of trading not only in the UK but globally. While light years away from the previously leading regional stock exchanges, the transfer of business to London cemented the reputation and, perhaps more importantly, enhanced market liquidity. These are critical pieces of the UK financial jigsaw that are often overlooked today.

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