International Order Book (IOB)

The IOB enables investors to unlock the potential of some of the world’s fastest growing markets through a single central electronic order book. It offers easy and cost efficient direct access to securities via depositary receipts from 46 countries, including those in Central and Eastern Europe, Asia and the Middle East.

The market has grown rapidly since its inception in 2001, with five of the twenty most heavily traded securities on the London Stock Exchange being traded on the IOB in the second half of 2011.

With similar order functionality as found on SETS, IOB provides a deep, liquid market. This visible liquidity is supplemented by the potential to obtain price and / or size improvement on execution. This is made possible by the minimum size for hidden orders and the minimum peak of iceberg orders both being set at around US$14,000, encouraging the provision of larger un-displayed orders. Price improvement is further enhanced by the option to automatically update a hidden order to the mid of best visible bid / offer.

Introduction of integrated electronic market making from 2 April 2012

Following a market wide consultation, integrated electronic market making will be available on IOB from 2 April 2012. This change will allow member firms to register to a commitment to provide a two-way Executable Quote (displaying member firm’s identity) on a security by security basis, on any IOB security. This will see the removal of the Named Order functionality and bring IOB even closer in line to SETS. More information on the original consultation can be found here.

IOB Order Book Trading Statistics
For the latest whole month's IOB trading statistics and listings overview please click here.

IOB Clearing
In line with SETS and the Turquoise Derivatives IOB service, the IOB benefits from a Central Counterparty (CCP) clearing service for over 70 of the most heavily traded securities, ensuring anonymous pre and post trading, alond with full counterparty protection. A buyer protection service is available allowing participants to make elections in unsettled, cleared trades during a corporate action.

IOB Netting
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.

IOB Participants
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.

Access
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: clientimplementation@londonstockexchange.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.

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

Turquoise Derivatives is a member of the London Stock Exchange Group and trades options and futures on the FTSE Russia IOB index which consists of the 15 most liquid Russian IOB securities. Turquoise Derivatives also trades options and derivatives on over 30 individual IOB securities representing Russia as well as Kazkhstan, Egypt, India, South Korea. As well as these well established products Turquoise Derivatives also offer dividend futures on 7 Russian stocks. More details on the complete offering can be found here.

Downloads
IOB Factsheet(