London Stock Exchange looks to extend SETSmm service

London Stock Exchange looks to extend SETSmm service

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."

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