London Stock Exchange announces improvements to SETSqx trading service

  • Standardising auction call periods and timings
  • Introducing closing price crossing session mirroring the SETS closing auction process
  • Improvements designed to stimulate liquidity and improve customer experience of trading in auctions

London Stock Exchange announces a series of improvements to the SETSqx trading service for securities outside the FTSE 350 Index. The changes are designed to improve customer experience and boost liquidity. They include:

  • SETSqx auctions will be scheduled more evenly throughout the day. The first auction uncrossing will now take place at 09:00
  • The current auction call period will be reduced to 10 minutes before each schedules uncrossing (5 minutes for the closing auction)
  • Orders may still be entered throughout the trading day from 08:50 onwards, but will only be visible in the auction call periods
  • Following the closing auction, the Closing Price Crossing Session will be introduced to allow a further trading opportunity at the closing auction price in line with the current closing auction process for SETS

 Full details of the changes can be found here: www.lseg.com/sites/default/files/content/documents/LSEG_SETSQX_FACTSHEET_5.PDF  

 Ian-Patrick Lauder, Equity Markets, London Stock Exchange said:
“The SETSqx trading service performs a vital role for smaller securities, bringing liquidity to less traded stocks. The changes we are implementing will enhance the choice investors have in executing trades against market maker Firm Quotes, or in auctions, and will help create an environment where investors are able to trade large sizes in the auctions as well as continuing to interact with market makers throughout the trading day.”

About SETSqx
SETSqx (Stock Exchange Electronic Trading Service – quotes and crosses) is specifically designed for securities less liquid than those traded on London Stock Exchange’s SETS trading service. SETSqx combines four periodic electronic auctions each day with standalone non-electronic quote-driven market making providing guaranteed liquidity in at least one Exchange Market Size (EMS).

All market participants with order book access can enter electronic orders into the SETSqx order book.

As of September 2014, there are over 1,000 securities on the SETSqx trading service.

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For further information:

Alexandra Ritterman +44 (0)20 7797 1222

                               newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is a diversified international exchange Group that sits at the heart of the world's financial community. The Group can trace its history back to 1801.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and the pan-European equities platform, Turquoise. Through its markets, the Group offers international business, and investors, unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant and growing part of the Group’s business operations. LSEG operates CC&G, the Rome headquartered CCP and Monte Titoli, the significant European settlement business, selected as a first wave T2S participant. The Group is also a majority owner of leading multi-asset global CCP, LCH.Clearnet.

The Group offers its customers an extensive range of real-time and reference data products, including Sedol, UnaVista, Proquote and RNS. FTSE calculates thousands of unique indices that measure and benchmark markets and asset classes in more than 80 countries around the world.

London Stock Exchange Group is also a leading developer of high performance trading platforms and capital markets software. In addition to the Group’s own markets, over 40 other organisations and exchanges around the world use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, United Kingdom with significant operations in Italy, France, North America and Sri Lanka, the Group employs approximately 2,800 people.

Further information on London Stock Exchange Group can be found at: www.lseg.com