International Financial Markets Essay Example | Topics and Well Written Essays - 2000 words - 4

International Financial Markets - Essay Example effected where the surplus funds are invested in the markets through buying of assets, and the deficit is counteracted when investors sell their assets. The London Stock Exchange (LSE) has played a major role in financing investors. The financing from an exchange in the recent decade has been viewed to be more effective compared to other financial institutions. The process applied in extending credit is much easier to undertake. A number of factors have been seen to enhance this process. These include the growing competition, fluctuating interest rates, deregulation and advanced technology that have resulted in the efficiency of operations of the LSE. LSE is among the largest trading market internationally serving 3000 companies in 70 different countries. Integrity, market knowledge and a lot of expertise have been a platform for LSE. It is a leader in providing of services that facilitate raising of capital amongst its participants. It is also among the leading stock exchanges in equity trading. LSE offers both real and virtual stock exchanges. Virtual stock exchange allows its investors to trade online while the real exchange is done offline. Advertently, this allows all manner of investors to trade in this stock exchange. The technological advances allow participants in this market to have the opportunity to trade locally and internationally. The LSE group has in the past decade offered high performance trading platforms, market softwares e.g. sets, crests, for assessment of assets as well as post trading services for its participants (Alexander, 2008, 281; Alexander, 2010, 137). Main markets works together with the LSE and the financial authorities in regulation of trades with big corporations. These are companies who are not only looking for ways of raising capital but also in having a reputation in their liquidity shares profile and international position. It has a combined market capitalisation of  £3.7 trillion. This market serves over 1400 companies. It