Our experience
The Exchange has a long history of managing an evolving secondary market environment. This has involved responding to huge changes in technology, regulation and market participation in order to provide the most appropriate trading environment for a diverse client base, often with conflicting priorities.
We have migrated floor-based, quote-driven markets to screen-based, order-driven markets and have created bespoke environments for different types of instrument.
From our premium fully electronic order-driven trading platforms for the most liquid UK and international securities to the less liquid securities supported by market makers, each one is designed to provide the most effective way to trade the various kinds of securities on our markets.
Key features of a successful secondary market platform
- Transparency
- Liquidity
- Accessibility
- Speed and reliability
- Cost effectiveness
What we can offer
The Exchange provides consultancy in a number of key areas to enhance the quality of secondary markets:
Market analysis
The Exchange can carry out an in-depth study looking at trading and liquidity patterns to assess the quality of a market or specific segment. We will produce a detailed quantitative and qualitative report that can include comparative analysis (where the data is available).
Market design
The next step will be to input the information into the design of the most suitable secondary market platform, custom built to take account of potential liquidity, type of instruments, local practice and efficiency. We will also assist in producing the most appropriate rules environment to govern it.
Market access
The Exchange can assist in developing a connectivity strategy, both pre and post trade, that enables the broadest level of access through a high speed, high resilience and cost effective network. We will also advise on the key services to offer through the network to provide an efficient market model.
New products
There is an increasing array of new products traded on-exchange that can provide both important market benefits and represent new revenue streams. The Exchange can advise as to the feasibility and means by which such products can be introduced. Such products include:
- Exchange Traded Funds
- Exchange Traded Commodities
- Securitised Derivatives
- Structured Products
- Real Estate Investment Trusts.
For more information on any aspect of secondary markets development please contact us