royal court also raised some monies. These are the earliest evidence of organized trading in marketable securities in London. Royal ExchangeAfter Gresham's Royal Exchange building was destroyed in the Great Fire of London, it was rebuilt and re-established in 1669. This was a move away from coffee houses and a step towards the modern model of stock exchange.
The Royal Exchange
The Royal Exchange not only housed brokers but also merchants and merchandise. This was the birth of a regulated stock market, which had teething problems in the shape of unlicensed brokers. In order to regulate these, Parliament brought out an act in 1697 that levied heavy penalties, both financial and physical to those brokering without a licence. It also set a fixed number of brokers (at 100), which was later increased as the size of the trade grew. This invariably led to several problems of its own, one of which was that the traders had started leaving the Royal Exchange, either by their own virtues or through expulsion and had s tarted dealing in the streets of London. The street in which they were now dealing was known as Change or Exchange Alley which was suitably placed close to the Bank of England.