This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Stamp Taxes on Shares Manual

Financial markets: trading venues: what is an exchange?

An exchange is a marketplace on which stocks and shares, and options and futures on stocks, bonds and commodities etc. are traded.

Types of exchanges

  • Most exchanges specialise in a particular type of security, for example:
  • Equities and debt instruments
  • Derivatives, e.g. options, futures, swaps
  • Commodities, e.g. oil, precious metals, grains

An exchange provides:

  • liquidity in the market, allowing the trading of securities
  • access for investors centrally to a wide range of securities
  • integrity to the financial markets (due to their regulation)