Click on the image below to view the presentation.
|
|
TRADING ON THE ORDER BOOK |
TRADING OFF THE ORDER BOOK THROUGH AN RSP |
|
Where is order matched? |
On the central market i.e. the Exchange’s order books. |
Order is matched from an RSP’s internal order flow. |
|
How is your price determined? |
Your broker places the order directly onto LSE’s order book, where it is automatically matched, or you name your own price and wait for someone to buy or sell at that price. |
Your broker receives quotes and spreads available from the various market makers. If you accept it, your broker contacts the RSP directly to execute the bargain. |
|
Price improvement? |
No |
Possibly |
|
Ability to make your own price by limit order being exposed direct to market? |
Yes |
No |
|
Can you see the prices that other market participants are getting before you trade? |
Yes |
No |
|
Does your broker pay execution charges? |
Yes |
No |
|
Full transparency of dealing costs? |
Yes |
No |
|
Trade reporting to LSE? |
Automatic |
Trade may be reported to alternative venue. |
|
Trade conducted by LSE rules, with LSE market supervision? |
Yes |
Not necessarily – trade may be reported to alternative venue without LSE market supervision. |
|
Available securities? |
All FTSE 100, FTSE 250 and small-cap securities, FTSE UK AIM50, equities with a LIFFE traded equity option, all dual-listed Irish stocks and ETF’s. |
Depends on individual RSP coverage. |