Press releases 2005
10 October 2005
DERIVATIVES ACTIVITY CONTRIBUTES TO GROWTH IN SETS TRADING
Trading on SETS, the London Stock Exchange’s electronic order book, continued to show strong growth during September 2005, reflecting the increasing impact of off exchange derivatives trading, now estimated to account for approximately one third of the total value traded on SETS.
The total number of trades and value traded on SETS during the month both increased 27 per cent on September 2004. There were 4.5 million SETS trades worth £97.9 billion in September 2005, compared with 3.6 million SETS trades worth £77.4 billion in the same month last year.
Included in the SETS figures are trades on SETSmm, the Exchange’s hybrid electronic order book, which had its strongest month to date. During the month there were a record 752,207 SETSmm trades worth £6.5 billion. Compared with September 2004, the average daily number of order book trades increased 131 per cent to 34,191 and the average daily value traded increased 94 per cent to £295.8 million.
Some of the SETSmm trading growth can be attributed to the recent transfer of 198 Main Market small cap securities onto SETSmm. Compared with their trading performance during June 2005, their last full month on SEAQ, the transferred stocks benefited from a 28 per cent narrowing in spread. The overall average daily number of trades increased by 86 per cent and the overall average daily value traded increased 25 per cent.
The total number of equity trades executed across the Exchange in September 2005 was 7.2 million, up 30 per cent on the total number of trades carried out during September last year. The average daily number of trades during the month was up 30 per cent to 326,635 and the average daily value traded increased 19 per cent to £21.5 billion.
Trading in ETFs and covered warrants also saw strong increases. The number of ETF trades rose 48 per cent on September 2004 to 10,189 and the value traded increased 167 per cent to £707.0 million. There were 5,591 covered warrant trades with a value of £22.1 million, up 87 per cent and 100 per cent on September 2004, respectively.
September was another good month for new issues on AIM with 33 companies joining the market, raising £394 million between them. This brought the total number of new issues on AIM during the calendar year so far to 389, raising a combined total of £3.4 billion.
There were 22 business days in September 2005, the same number as in September 2004.
For further information, please contact:
Simon Wheeler Press Office +44 (0)20 7797 1222
Notes to editors:
About the London Stock Exchange
The London Stock Exchange is one of the world’s foremost 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. In 2004, 80% of all European IPOs floated in London. By the end of 2004, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £3.5 trillion, with £4.7 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.
Companies considering flotation have a choice of markets:
AIM is the London Stock Exchange’s international market specifically designed for smaller, growing companies, combining the benefits of a public flotation with appropriate levels of regulation.
The London Stock Exchange’s Main Market for established companies seeking international recognition is one of the world’s best known, longest-established and most liquid markets. It is home to some of the world’s largest and most successful companies, giving them access to one of the deepest pools of capital in the world.
An IPO or Initial Public Offering is when a new company joins one of our markets and raises capital by issuing shares. This excludes transfers and introductions (when companies join the market without raising money).
Indices are calculated and managed by FTSE Group, a world-leader in the creation and management of global equity indices. The FTSE Group is jointly owned by the London Stock Exchange and the Financial Times, but operates as a wholly autonomous company.
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SETS – the electronic order book
It is over seven years since the launch of SETS and the service continues to go from strength to strength. Overall, the market is benefiting from tighter spreads and greater liquidity. Usage of SETS continues to grow, as shown by recent record increases in the number of orders entered, the number of firms using the order book and order book share of business.
SETSmm is the Exchange’s successful trading service for FTSE 250 and other leading non order book securities. By combining the best features of the existing SETS and SEAQ trading services, SETSmm appeals to market users who want to trade electronically, as well as those customers who use the market making system.
Retail Trading Figures
Retail trading figures are available from our website at –
Figures are available from November 2002 to date.