London Stock Exchange and the history of membership

This is a guest post written by Charlie Turpie, head of Public Services at London Metropolitan Archives. Despite many years in the job, Charlie still loves being an archivist and is particularly interested in helping people find and understand the LMA records.

When we think of the Victorian and Edwardian period, we sometimes picture the new technology which came into being: trains, telegraphs, mechanised transport. None of these inventions would have been as successful as they were without finance raised through companies issuing shares to make, build and run them. The London Stock Exchange was the world’s largest and important stock exchange from the late 1830s to 1914 and the work of buying and selling shares was done in person on the stock exchange floor by thousands of men who built networks founded on trust and reputation. You may have an ancestor who worked there and London Metropolitan Archives’ London Stock Exchange collection (now available on Ancestry) could allow you to find out more.

The London Stock Exchange membership records begin in 1802 and become fuller in detail as the decades go on. Everyone had to apply for membership and then reapply each year. Usually the fullest applications are those for the first year that someone applied to become a member of the Stock Exchange. The exact details which each applicant had to provide do vary over the 19th and 20th century – for further information please see LMA’s information leaflet.

Many candidates had strong ties to existing stockbrokers or stockjobbers who might be their brothers, fathers or uncles (so do check for other members on your family tree). Other potential members had no family connection with the Stock Exchange but might have some years in banking or insurance instead. There were no formal qualifications required and no apprenticeship or training provided on admission but stockbroking and stockjobbing required intelligence, flexibility and quick reactions, ability to understand finances and to “read” people and situations.

All applicants had to provide the names of three existing members of the Stock Exchange who would stand surety for them, usually a substantial sum (in 1850-1914 the surety stood at £750). Each stockbroker and stockjobber had unlimited liability which meant that if he misjudged a stock and overextended himself, all his personal wealth and property was forfeit. It was very important to the Stock Exchange and existing members that they could place trust and confidence in newcomers trading in the Stock Exchange.

Most applications were successful as long as they found three existing members willing to pay these large sums as surety. It is not clear why some people were unsuccessful as this is not noted in the membership records. Each member had to apply every year and provide his details again, which gives you a yearly check on home and business addresses and names of his business partners and clerks. Clerks were not necessarily members of the Stock Exchange but some could transact business on the floor of the Exchange by approval. Details of clerks who are not members can be found in members’ applications and in some cases those clerks went on to become members in later years.

Start researching the Stock Exchange Membership Applications, 1802 – 1924 on Ancestry.