Technical guidance notes

In between Technical Specifications the Exchange may publish separate project specific supplements. Each of the current projects is listed below.

• Electronic Order Book for the UK Retail Bond Market

The new electronic order book for bonds will introduce an order-driven trading service for UK government and corporate bonds which will offer retail investors efficient access to an on-screen secondary market in London listed debt instruments. Currently these instruments are available for trade reporting only.

• Oslo Børs cash equity and fixed income market migration to TradElect

As part of their commitment to providing world-leading execution services Oslo Børs has formed a strategic partnership with the London Stock Exchange Group.  This will see the migration of the cash equities and fixed income markets to the TradElect platform with Infolect used for market data distribution. These documents contain the information that Oslo Børs members require in order to migrate the cash equities and fixed income markets to both TradElect and Infolect.

•  FIX 5.0 Interface

As part of a programme of initiatives designed to facilitate wider access to our markets we are introducing a FIX 5.0 interface to TradElect. Our FIX 5.0 Interface will enable customers to take advantage of a global industry-driven standard without compromising on performance. Customers can access a high performance interface that further supports richer trading functionality, making future, functionality developments and conformance requirements far easier and cost-effective for market participants.  The FIX Repository represents the raw data behind the FIX specification in "database-compatible format". Files include an XML data dictionary with complete enumeration values and XML message content.

• Affari Migration Activities

Borsa Italiana and the London Stock Exchange are currently working to integrate their systems to deliver unprecedented levels of performance, improved tradability and access across asset classes and markets for all of our customers. Phase one was the migration of the MTA markets to TradElect and was completed in November. We are now in the second phase of the project which includes the migration of the SEDEX, MOT, ETF plus and MAC markets to TradElect.

Please click here for the Technical Guide and further information about the Affari Phase 2 Markets Migration.

• International Order Book (IOB) clearing service

The introduction of a Central Counterparty (CCP) service to the IOB, initially to the 50 most liquid securities that trade on the order book, is designed to help firms to mitigate counterparty risk, attract new IOB participants, improve liquidity and lower operational costs. This service will bring the IOB in line with SETS.

• Member Authorised Connection (MAC) 

MAC is a new direct connectivity solution that enables a non-member firm to connect directly to the Exchange's centrally cleared order driven markets under an authorising member firm's trading codes. As the connection is direct between the MAC customer and the Exchange, orders submitted to the market do not pass through the usual Order Management System (OMS) of the authorising member firm as is standard for other forms of order routing.

• Market Data Optimisation 2009

Market Data Optimisation 2009 (MDO2009) is a series of technical updates to both London Stock Exchange and Borsa Italiana Service and Performance Channels to reflect the commercial decommissioning of the Level 1 Plus tariff, whilst also allowing Exchange Service Channel customers to benefit from the same liquidity aligned structure introduced for Performance Channels.

• Order Book Enhancement Programme

We operate a continuous programme of investment ensuring our services are continually enhanced to meet today’s trading challenges and opportunities. Our hidden order functionality will provide richer trading functionality for our SETS, IOB and ITBB order books, enabling customer’s orders to interact with a deep, liquid order book, providing a high probability of execution, whilst minimising information leakage and helping to reduce the total cost of trading.

This phase of the enhancement programme consists of hidden limit orders, hidden pegged orders and minimum execution size.

• FTSE indices on Infolect  

The London Stock Exchange is committed to constantly reviewing ways in which to enrich and add value to its range of products and services. It is for this reason that the Exchange has partnered with FTSE to publish their intra-day snapshot indices over Infolect.

• FTSE Italia Indices

The Group will be harmonising index providers with the migration of index services for Borsa Italiana's markets to FTSE, the global index provider.

• Performance Channels

Performance Channels is a reduced latency, high speed delivery mechanism that increase the rates at which market data can be disseminated.

• Central Counterparty and Settlement Netting

The Exchange has introduced a choice of CCP for equity trades on the SETS and SETSqx market. Customers can choose to clear their trades through either LCH.Clearnet Ltd or SIX x-Clear AG. It does not matter whether the trading counterparty is using the same or a different CCP.

The approach used is consistent with the European Code of Conduct for Clearing and Settlement peer-to-peer interoperability model.

The CCP service was enhanced on 1 July 2002 to include optional settlement netting. The objective is to allow participants to have just one net settlement per security per day with LCH and x-clear, irrespective of the number of trades they had dealt on SETS.

The CCP service is now available for all automatic executions on SETS and SETSqx.

• Other