The Royal Exchange was founded by Sir Thomas Gresham, an English financier and merchant, as a response to the growing demand for a central trading venue in London. Before its establishment, trade in the city was mostly conducted in scattered markets and streets, leading to inefficiencies and safety concerns. Designed by the architect Edward Aldred, the Exchange was constructed in the style of a classical courtyard building, featuring a large central area surrounded by shops and offices for merchants. It opened its doors to traders and merchants in 1571, quickly becoming a bustling hub for commerce.

The Royal Exchange was not just a marketplace; it also served as a meeting point for merchants from diverse backgrounds, contributing to the creation of a vibrant trading community. The Exchange combined trade, politics, and culture, offering a space where information was exchanged as readily as goods. Over time, it also became a venue for the discussion of societal matters, reflecting the intertwined nature of commerce and governance in Elizabethan England. The Exchange housed facilities for various kinds of trade, including cloth, spices, and other commodities, vital to the economy of the era.

Gresham's vision came at a time when England sought to enhance its economic stature, particularly following the Reformation, which had altered the country's political and economic landscape. This institution not only represented a significant architectural achievement but also laid the groundwork for London's status as a preeminent trading center in the years to come. The Royal Exchange's opening increasingly attracted foreign merchants, thereby enhancing international trade relations and contributing to the establishment and expansion of London as a global financial hub.