The model


The Exchange will support 2 methods of price discovery and trading - Order Book and Retail Service Providers.

(i) Covered Warrant Order Book

 

A continuous trading environment centred on order execution against committed principals, effectively an electronic market making structure between 08:15 and 16:30.

 

(ii) Covered Warrant Request for Quote

 

Issuers may have covered warrants admitted to the Exchange and provide price discovery through mechanisms other than the Order Book, via retail service providers . Transparency for these warrants will be through the dissemination of reference data and trade reports through LMIL between 07:15 and 17:15.

 

  • Not all covered warrants have automatic execution through an Order Book, and alternative price messaging mechanisms may be used.
  • The covered warrant market will be open to all participants, and the separation of warrants between order book and retail service provision will be on Exchange systems.
  • Covered warrants will not be included in Central Counterparty (CCP).
  • Access to the order book will be obtained through the Exchange members' existing links and technical infrastructure. 

 

(iii) Trade reporting

 

Although all secondary market trades involving a member firm need to be trade reported, only members need to submit trade reports. Reports should be submitted within 3 minutes of a trade between 07:15 to 17:15. Trade reports sent outside these hours will be disseminated before opening the following day.

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