Press releases 2002
18 November 2002
London Stock Exchange to offer bonds
Van der Moolen UK Ltd today became the first firm to offer trading in fixed income securities through the London Stock Exchange’s RSP Gateway. The Gateway now enables private client brokers to access prices and execute trades in equities, covered warrants and fixed income securities.
Van der Moolen have become a member firm of the Exchange and are specialist market makers in retail sized European Government bonds, US Treasuries, Credits, Jumbo Pfandbriefe, Agencies, Emerging Markets and Corporates. UK Gilt and Euro-sterling products will also be available via the RSP Gateway.
Retail brokers will be able to take advantage of easy access to bid/offer prices in over 700 US and European bonds, with tight spreads and no minimum trade size. This is the first time that retail investors have easy access to such a wide range of fixed income products through their stockbrokers. They will be able to buy bonds at wholesale prices for retail sized trades.
Van der Moolen’s web site ( www.vandermoolen.com) will allow retail brokers access to view live prices in the variety of fixed income products that they are making available via the RSP Gateway.
The Gateway works by linking Retail Service Providers (RSPs) and retail brokers through a single Exchange network connection rather than multiple proprietary connections that together can be costly to establish and maintain.
Chris Broad, Head of Broker Services at the Exchange, said: “This development is the latest example of the Exchange broadening the range of products and services available to customers. We are delighted to welcome Van der Moolen and their fixed income products to the RSP Gateway. The Gateway service will cap, and ultimately bring down, the industry cost of creating and maintaining multiple electronic connections between brokers and RSPs”.
Paul Humphrey, Managing Director of Van der Moolen UK Ltd, said: “We are extremely privileged to be the first sell side institution to deliver international fixed income products through the RSP Gateway. The Gateway will enable Van der Moolen to access a new range of clients, and at the same time provide easy access for those clients to a pool of fixed income liquidity that has been historically difficult to access.”
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For further information, please contact:
Tiffany Hardie-Evans Press Office +44 (0)20 7797 1222
Paul Humphrey Van der Moolen +44 020 7837 0088
Notes to editors:
Background to the RSP Gateway:
The retail broking market in the UK is facilitated by an increasing number of Retail Service Providers (RSPs) who offer electronic pricing and execution services to private client brokers.
The Exchange aims to improve this mechanism over the short to medium term by offering a commercially attractive central solution for routing messages between private client brokers and RSPs. Offering this service through its existing network, the Exchange is effectively consolidating the electronic links needed by both private client brokers and RSPs.
About the London Stock Exchange:
The London Stock Exchange is one of the world’s leading equity exchanges 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 by trading in the world and Europe's largest pool of liquidity. By the end of 2001, the market capitalisation of UK and international companies on its markets amounted to £4.1 trillion, with over £5.6 trillion of 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.
About Van der Moolen
Van der Moolen UK Ltd operate as specialist fixed income market makers in small size, and offer retail sized liquidity at wholesale prices in over 700 bond products covering European Government bonds, UK Gilts, European and US Credits, Jumbo Pfandbriefe, US Treasuries and Agencies and Emerging Markets. Average sizes are typically in the range of 1 to 5 million, depending on the instrument traded, and the operation is rapidly becoming Europe’s premier source for less than wholesale quantities of liquid investment grade bonds of all types.
Van der Moolen UK Ltd is regulated by the FSA to conduct investment business, and is also a member of ISMA.