The Royal Exchange was established in 1566 and had become a bustling hub for merchants and traders in London over the years, representing the economic vitality of the city. However, in September 1666, the Great Fire of London ravaged much of the city, starting on Pudding Lane at the bakery of Thomas Farriner. As the fire spread north across the City of London, it encountered various buildings, fostering rapid flames that consumed everything in their path, including the Royal Exchange. The use of wooden structures and narrow streets facilitated the fire's progression, leading to widespread devastation.

By the time the fire reached the Royal Exchange, enormous plumes of smoke could be seen rising over the skyline. Efforts to extinguish the flames were hampered by a lack of sufficient firefighting resources and the threat that water sources would run dry. The Royal Exchange, where traders had once gathered in relative safety, burned alongside numerous other iconic structures, including St. Paul’s Cathedral and several churches, drastically altering the landscape of London.

The aftermath saw a city in ruins, with millions of pounds lost in assets and trade. The destruction of the Royal Exchange not only resulted in financial loss but also prompted changes in urban planning and firefighting techniques in London. Following the devastation, Sir Christopher Wren was commissioned to help redesign the city, leading to the construction of a new Royal Exchange and influencing building methods for decades to come.