London Stock Exchange looks to extend SETSmm service
01 November 2004 | 3869 views | 0
The London Stock Exchange says it will consult the market on extending its hybrid electronic order book, SETSmm, to cover more securities.
Trading in SETSmm securities has amounted to £135 billion since it was launched a year ago, which equates to an average daily value of £539 million.
LSE says a comparison of the last three months of trading on SETS against the three months prior to launch has highlighted an increase in value traded of 15%. The same analysis of trading for SETS and SEAQ gives changes of six per cent and -3 per cent respectively. The Exchange says increases in trading have been accompanied by a sustained, reduction in spreads of around 40% for SETSmm securities.
Furthermore, the average number of market makers registered to provide continuous two-way prices in a SETSmm security has risen to 10, up from an average of eight before the launch of the hybrid model last year.
Martin Graham, the LSE's director of market services, says: "It is logical now to consider extending SETSmm to more securities on our markets. In the coming weeks, we will be consulting with market participants on the timing and extent of a further roll out of the service."