In line with SETS and the Turquoise Derivatives IOB service, the IOB benefits from a Central Counterparty (CCP) clearing service around 100 of the most heavily traded securities, ensuring anonymous pre and post trading, along with full counterparty protection. A buyer protection service is available allowing participants to make elections in unsettled, cleared trades during a corporate action. A manual buyer protection election service is operated by LCH.Clearnet for IOB corporate actions. To activate an election in a specific corporate action (currently at no cost) requires the submission of a Buyer Election Notice to LCH.Clearnet. This can be found as Appendix 2D.F of Section 2D at the following link: http://www.lchclearnet.com/rules_and_regulations/ltd/default.asp
An optional netting service is available on the IOB, provided by LCH.Clearnet, which enables firms to net same day, same-security trades at the CCP level for trades in cleared securities. To opt in to netting, please contact the Client Implementation team on +44 (0)20 7797 3232.
To access information on member firms in the UK and around the world, including those with access to the IOB, please visit our member firm directory. You can also search by a firm’s name or search for firms’ DTC or Euroclear Bank codes.
For information on Market Making, please see page 47, section 5.6 of the Guide to Trading Services on Trading Services page.
All member firms that wish to trade electronically on the IOB are required to complete an IOB Clearing Static Data Form and submit it to the London Stock Exchange. Completed forms should be submitted to: email@example.com. For assistance, please contact the Client Implementation Team on +44 (0)20 7797 3232. All IOB trading participants are required to have a direct or indirect relationship with LCH.Clearnet. The LCH.Clearnet Membership Team can be contacted on +44(0)20 7426 7063.
You may require assistance from your settlement provider and/or GCM to complete the relevant sections of the Static Data Form:
- Individual Clearing Members (ICMs) and General Clearing Members (GCMs) are required to complete separate Static Data Forms for principal and agency business.
- Non Clearing Members (NCMs) are required to complete the Static Data Form and have it countersigned by their GCM.
- Direct Market Access (DMA) clients are not required to submit a Static Data Form, but should confirm with the respective member firm that they will support this service.
A Euroclear RG448 Power of Attorney form needs to be completed and returned to Euroclear Bank, by the member firm or its settlement provider for each participant account within Euroclear Bank. Forms must be returned to Euroclear Bank by the member firm or its settlement provider before access to IOB is granted. Please contact Nicolas Landman at Euroclear Bank on +32 (0)2326 2757 for assistance.
Derivatives on IOB securities
London Stock Exchange Derivatives Markets (LSEDM) offers on screen trading for options and futures, in the most liquid IOB securities, plus the FTSE RIOB Index. Flexible trade reporting for options and futures is also available on these, plus more than 30 other IOB securities, including names from Kazakhstan, India and South Korea.
More details on IOB Derivatives, including dividend futures, and other LSEDM products can be found here http://www.lseg.com/derivatives.