London Stock Exchange upgrades TradElect

  • Speed, capacity and functionality improved for MiFID

The London Stock Exchange today announced the completion of a significant upgrade to TradElect, its recently launched electronic trading platform, as volume growth continues. Release 2.0, as the upgrade is called, has improved processing speed by 40 per cent, system capacity by 70 per cent and has added functionality that allows the Exchange to offer market users a full suite of MiFID compliant solutions.

David Lester, the Exchange’s Chief Information Officer, said:

“In its four months since launch, TradElect has already demonstrated its capabilities with the top ten busiest days by volume and seven of the top ten busiest days by value traded taking place during the period. Following this upgrade, TradElect now enables market participants to execute trades in around 6 milliseconds and has the ability to handle 4,200 orders a second. Moreover, we have added new functionality to accommodate a range of MiFID-specific solutions.”

Release 2.0 introduces new functionality to support firms in meeting the requirements of MiFID which comes into effect on 1 November. This new functionality includes the introduction of market making across all liquid securities on the Exchange’s SETS order book as an on-Exchange alternative to systematic internalisation as well as limit order display in all UK Main Market securities.

In addition, a Pan-European trade reporting service for off book executions has been introduced, covering approximately 5,000 securities. The service will cover both On Exchange (i.e. under the Exchange’s rules) and OTC (i.e. unregulated) trade reports.

New functionality has also been added to the SETS Internaliser. Members will be able to make further cost savings with the option that any trades internalised on SETS are not sent to LCH and CREST for clearing and settlement.

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For further information, please contact:

Catherine Mattison Press Office +44 (0)20 7797 1222
Fiona Hurst newsroom@londonstockexchange.com

About the London Stock Exchange

The London Stock Exchange is the world’s premier international equity exchange and a leading provider of services that facilitate the raising of capital and the trading of shares.

The London Stock Exchange is the most international equities exchange in the world and Europe's largest pool of liquidity. By the end of 2006, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £4.4 trillion, with £6.7 trillion of equity business transacted over the year.

The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.

Further information on SETS

Implementation of Release 2.0 coincided with the tenth anniversary of SETS, the London Stock Exchange’s electronic order book, which was introduced on 20 October 1997 as the trading service for FTSE100 companies. At the time of launch, system capacity was just 50 orders per second and execution times were around 100 times longer at 600 milliseconds. Today there are 2,000 companies, funds and other securities that benefit from order-driven trading. The average daily number of trades on SETS has increased from 10,789 at launch to 575,988 during September 2007, while the average daily value traded has increased from £641 million to £8.4 billion. As a result of the increased liquidity, spreads in FTSE 100 securities have dropped by over 90 per cent to 10 basis points, and the FTSE250 has benefited from a similar reduction in spreads.