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Last Trading Day
The final day for dealing in options contracts for a particular expiry month.
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Letter of Indemnity
A letter requesting replacements for lost shares from a company's treasury.
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Limit Order
An order to buy or sell a security at no worse than a specified price. These are the only type of order which appear on the SETS order book.
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Liquidity
A term used to describe the ease with which a share or other security can be traded.
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Listing
Companies whose shares are listed on the London Stock Exchange and are available to be traded.
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Listing Rules
These provide details of the requirements for obtaining a UK listing and also continuing obligations placed on listed companies.
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Lloyd’s of London
The world’s leading insurance market. Comprised of Lloyd’s Brokers and Lloyd’s underwriters operating in syndicates to underwrite insurance business.
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Loan Stock
See Bonds
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London Clearing House (LCH)
A Recognised Clearing House (RCH) under the FSA, it has responsibility for the clearing and settlement of derivative transactions effected on LIFFE, LME and IPE, and securities transactions on virt-x.
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London Inter Bank Offered Rate (LIBOR)
London inter-bank offered rate, the rate at which banks are willing to lend to other banks of top creditworthiness. Generally used to mean both the interest rate at any time, and specifically the fixing at a particular time (generally 11:00 am).
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London International Financial Futures and Options Exchange (LIFFE)
Market place for trading derivatives on financial instruments, and on soft commodities such as coffee and sugar.
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London Metal Exchange (LME)
A central market for the trade of non-ferrous metal derivatives.
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London Stock Exchange (LSE)
Market for trading in securities. The LSE is a Recognised Investment Exchange and as such regulates the operation of the market place.
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Long Bond
A common reference to the US 30 year benchmark Treasury issue.
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Long Coupon
The first coupon on a newly issued bond which is payable at the end of a period longer than the interval between remaining coupons.
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Long Position
The term used to indicate that an investor or trader holds a quantity of bonds that has not been sold.
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Long-dated gilts
Gilts with over 15 years to redemption.
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Lot
One equity or index options contract, ie. A contract representing 1,000 shares or £10 × Index level.