London Exchange Cutting 350 Jobs To Take On Rivals

Revenue will fall steadily as members switch to …, owned independently by 60 financial bodies, from July 15. But … will eventually stabilize at about ₤130m, down from ₤196m last year. Talisman (1), the old settlement …, will continue alongside Crest (2) until April next year, but cease to be … around the end of 1996.

To bring costs in the line with lower …, the … plans to cut about 100 … besides the 250 it has decided will go when Talisman is … - bringing the total … of staff down to about 600 from 940 at present. This is the latest in a series of retrenchments (3), which have seen … fall from almost 2,000 in 1992.

Note:

1. Talisman – Transfer Accounting, Lodgment for Investors, Stock Management for Jobbers – централізована комп’ютеризована система розрахунків. Вона дозволяє переводити акції із загального фонду, що використовується для купівлі нових цінних паперів та випуску нових сертифікатів.
2. Crest – комп’ютеризована система торгівлі на біржі.
3. Retrenchment – перегрупування.

Ex. VII Answer the following questions:

1. What's a stock exchange?

2. What does the London Stock Exchange provide a market for?

3. Who is admitted to the stock exchange? Who is barred by law from it?

4. What happened in the life of the Stock Exchange on the 27 October 1986?

5. What is a jobber?

6. What is a marketmaker?

7. What is a broker?

8. What does the phrase «seek a stock market quotation» mean?

9. What is a stock exchange quotation?

10. What's a bid price?

11.What's an offer price?

12. What kinds of speculators do you know?

13. Is speculation also possible in the form of options? What kinds of options exist?

14. How may settlement be postponed?

15.What is the name of carry-over by a bull?

16. What is the name of carry-over by a bear?

17. What does the price of the stock in the market reflect?

18. How can a stock exchange index be defined?

19. What are the names of some of the most important indexes?

Ex. VIII Ask questions to fit these answers:

1 A stock exchange provides a market for all these securities.

2. Jobbers were trading on the floor of the Stock Exchange before the Big Bang on 27 October 1986.

3. Market makers took over jobbers' job.

4. Yes, that's exactly what can be said about market makers.

5. Companies apply to the Stock Exchange to have their shares listed.

6. A stock exchange quotation usually gives a bid price and an offer price.

7. The difference between a bid price and an offer price is called «the spread».

8. They appear daily in the financial press.

9. It is investment business.

10. A small part of the business transacted on a stock exchange consists of speculative operations.

11. They are called bulls, bears and stags.

12. There exist call, put and put and call options. 13.It is called 'contango'.

14. Such carry-over is called 'backwardation'.

15. Indexes are regular statistical reports giving rises and falls in prices, shown as a percentage of the previous figure.

Ex. IX Points for discussion:

a) discuss with your partner the role of the middleman who works on a stock exchange;

b) give your point of view on speculative operations;

c) discuss with your group mates the role of stock market indexes.

Ex. X Read and translate the following text:

The largest stock exchange in the USA is the New York Stock Exchange, nicknamed the “Big Board”. It dates back to 1792. The NYSE is governed by a Board of Directors elected by the members. The Directors choose the Chairman who is the Exchange’s chief executive officer.

The listing requirements of the NYSE are very strict: to qualify for the listing of its stock a company must be of national interest, with substantial assets and earning power.

As in the case of Stock Exchange on the UK there are bulls and bear in the New York Stock Exchange. Options are handled by dealers specializing in this kind of business.

The NYSE quotations are published by newspapers together with stock averages or indexes (1). There are also the so-called “over-the-counter” markets (OTC) (2).

This term is originated in the USA, where there is a considerable volume of dealings in stocks and shares outside the stock exchanges. To a limited extent there is an over-the-counter market in London, where a small number of investment houses “makes” a market in a limited number of unquoted shares, the prices being listed in the daily press.

Notes:

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