In September 2004 the London Stock Exchange issued a Consultation Document entitled Trading in London – Building on Success (click here to view). This consultation covered a selection of initiatives collectively known as Domestic Trading Enhancements. The purpose of this programme is to ensure that the Exchange continues to deliver the best possible trading environment for each of the securities traded on our market. The consultation document succeeded in generating an extensive industry debate leading to the extension of the consultation period. In March 2005 the Exchange published a summary of the consultation findings - click here
The following changes have been introduced during the course of the programme.
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· Movement of the 15 largest Irish securities onto SETSmm. |
December 2004 |
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· Transfer of 100 of the largest small cap securities onto a new Small Cap SETSmm segment (SSMM). |
July 2005 |
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· Transfer of the remaining small cap securities onto the Small Cap SETSmm segment (SSSM). |
December 2005 |
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· Transfer of the constituents of the AIM50 index (and reserves) onto a new AIM SETSmm segment (AMSM). |
December 2005 |
A number of the proposed trading enhancements have been the subject of ongoing discussions with key areas of the market. Ongoing discussions cover the following areas.
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· The Exchange has continued to consult with the market on the services required to operate in a MiFID environment. Further consultation will be issued on this subject in the near future. |
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· We are currently in consultation on the development of an appropriate MiFID compliant platform for the trading of less liquid securities going forward. |
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· Discussions continue on the potential for the reduction of tick sizes in certain key securities on a trial basis to measure the impact on trading of such a change. |
Of course the implementation of Domestic Trading Enhancements is not the end of the story. It is essential that we measure the impact of the changes we make in order maintain the quality of our service. The following reviews are available to support the success of the enhancements implemented to date.
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· Performance of mid cap securities moved to SETSmm in November 2003. Used to gauge the success of SETSmm prior to moving the first small cap securities onto SETSmm - click here |
February 2005
Independent Review |
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· Updated review of Mid Cap performance - click here |
May 2005
Independent Review |
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· Review of small caps moved to SETSmm in July 2005 - click here |
October 2005 |
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· Review of small caps and AIM50 securities moved to SETSmm in December 2005 - click here |
March 2006 |
All documents related to this initiative are available in the download section.
If you have any comments regarding SETSmm or want to find out more, please contact either your primary account manager or our product manager for SETSmm, David Smith on +44 (0)20 7797 1765 or email him at dsmith@londonstockexchange.com