Press releases 2006
6 February 2006
VALUE TRADED ON SETS SOARS 63 PER CENT IN JANUARY
The London Stock Exchange has started 2006 with sizable increases in trading, most notably on SETS, its electronic order book. In January, the total value traded on SETS increased 63 per cent year on year to a record £117.7 billion. At the same time, the number of trades on SETS increased 45 per cent to 5.4 million. The total value and total number of SETS trades in the month exceeded previous records by 12 and 13 per cent respectively.
Eleven of the twenty busiest days ever on SETS were recorded during January. The extremely strong growth in SETS trading is part of a long-term trend toward electronic trading on the Exchange's markets.
The average daily number of trades on SETS was up 38 per cent to 258,045, while the average daily value traded climbed 56 per cent to £5.6 billion. The average size of a SETS bargain during January was £21,729, a 13 per cent increase on January 2005.
Clara Furse, the Exchange’s Chief Executive, commented:
“January’s record trading figures continue the pattern of accelerated SETS growth. Our investment in the speed, functionality and capacity of our systems continues to act as a catalyst for the development of new trading strategies, which use the latest technologies.”
Across the Exchange as a whole, the average daily number of trades was up 36 per cent on last year to 406,231. The average daily value traded was also a record at £27.1 billion, up 40 per cent on January last year. The increase in the average daily value traded in UK equity over the year was 30 per cent, well ahead of the CAGR (compound annual growth rate) of 16 per cent over the last twenty years.
Trading in ETFs was up 181 per cent on January 2005, with the total value traded during the month reaching £1.2 billion, an increase of 119 per cent on January last year. Covered warrants trading also continued to show strong growth, with the number of trades during the month up 92 per cent on January last year, and the value traded up 110 per cent to £28.6 million.
There were four IPOs on the Main Market during January, raising £27 million between them. There were seven IPOs on AIM, raising £76 million. There were also two IPOs on the Professional Securities Market for wholesale securities. These GDR issues, from the Philippines and India, raised £103 million between them.
RNS, the Exchange's service for the dissemination of company news, transmitted a total of 13,629 announcements during the month, an increase of 31 per cent on January 2005. This represented an overall market share of 77 per cent. The totals included 4,728 news and results announcements, representing an increase of 17 per cent on 2005 and an 87 per cent share of all news and results announcements made.
There were 21 trading days during January 2006, one more than in January 2005.
For further information, please contact:
Catherine Mattison Press Office +44 (0)20 7797 1222 firstname.lastname@example.org
Notes to editors:
• About the London Stock Exchange
The London Stock Exchange is the world’s premier international equity exchange 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 2005, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £4.1 trillion, with £5.2 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.
Professional Securities Market
The Professional Securities Market was established in July 2005, to coincide with the introduction of the FSA's new Listing Rules. PSM provides a solution for those issuers seeking to list securities in London without having to re-state their financial information to IFRS or follow the additional requirements of an offering to retail investors. Debt securities or depository receipts of any denomination may be listed on PSM on production of a prospectus aimed at a wholesale or professional audience.
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.
For information about the company or any FTSE indices, please contact email@example.com
• 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.