The markets for UK bonds in England are some of the largest and most liquid globally. The London Stock Exchange (LSE) is the largest bond market in Europe, with over £4 trillion in market capitalisation. In terms of trading volume, the LSE is also the second-largest bond market globally, behind only the New York Stock Exchange (NYSE).
The LSE is not the only bond market in England, and there are many other significant and vital bond markets scattered throughout the country. Here is a list of the ten most important bond markets in England, in order:
The London Stock Exchange
As mentioned, the London Stock Exchange is England’s largest and most important stock exchange. It is located in London and is the world’s oldest stock exchange, founded in 1773. The London Stock Exchange is home to more than 3,000 companies from over 70 countries.
The Birmingham Stock Exchange
The Birmingham Stock Exchange is the second-largest stock exchange in England; and it is located in Birmingham and was founded in 1836. The Birmingham Stock Exchange is home to around 300 companies from various industries.
The Manchester Stock Exchange
The Manchester Stock Exchange is the third-largest stock exchange in England; and it is located in Manchester and was founded in 1838. The Manchester Stock Exchange is home to around 250 companies from various industries.
The Leeds Stock Exchange
The Leeds Stock Exchange is the fourth largest stock exchange in England; and it is located in Leeds and was founded in 1845. The Leeds Stock Exchange is home to around 200 companies from various industries.
The Bristol Stock Exchange
The Bristol Stock Exchange is the fifth largest stock exchange in England; and it is located in Bristol and was founded in 1876. The Bristol Stock Exchange is home to around 150 companies from various industries.
The Liverpool Stock Exchange
The Liverpool Stock Exchange is the sixth-largest stock exchange in England; and it is located in Liverpool and was founded in 1880. The Liverpool Stock Exchange is home to around 100 companies from various industries.
The London International Financial Futures and Options Exchange (LIFFE)
It’s the seventh-largest stock exchange in England. It is located in London and was founded in 1982. LIFFE is home to around 50 companies from a variety of industries.
The ICE Futures Europe Exchange (ICE)
The ICE Futures Europe Exchange (ICE) is England’s eighth most significant stock exchange. It is located in London and was founded in 2005, ICE is home to around 40 companies from various industries.
The London Metal Exchange (LME)
The London Metal Exchange (LME) is the ninth-largest stock exchange in England; and it is located in London and was founded in 1877. The LME is home to around 30 companies from a variety of industries related to metals and related commodities trading.
The London Platinum and Palladium Market (LPPM)
The London Platinum and Palladium Market (LPPM) is England’s tenth most significant stock exchange. It is located in London and was founded in 1934. The LPPM is home to around 20 companies from a variety of industries.
How do you choose a bond market?
With so many options available, there are ways for traders to filter out each one and choose the best one for them. The factors traders can consider are as follows:
The size of the market
A larger market is typically more liquid and efficient than a smaller market, and it means it is easier to buy and sell bonds, and there is less price volatility.
The type of bonds traded
Some bond markets specialise in certain types of bonds, such as government bonds or corporate bonds. If you are looking to trade a specific type of bond, it is vital to ensure that the market you choose trades that type of bond.
The location of the market
Bond markets are typically located in financial hubs like London or New York. If you are looking to trade bonds from a specific country or region, it is vital to ensure that the bond market you choose trades them.
The fees charged by the market
Most bond markets charge fees for trading, settlement, and custody, and it is essential to compare the fees charged by different bond markets before choosing one.
The bottom line
At the end of the day, choosing the right market matters when it comes to trading bonds. Not only will you be able to make the best trades available, but you will also be able to lower your fees and increase your net profit. Investors who are new to trading bonds should do thorough research before making any decisions.