SETS is the London Stock Exchange’s flagship electronic order book, trading FTSE100, FTSE250, FTSE Small Cap Index constituents, Exchange Traded Funds, Exchange Trading Products as well as other liquid AIM, Irish and London Standard listed securities. The Exchange also operates a version of SETS on a modified trading cycle that supports Securitised Derivatives.
Functionally rich with multiple order types, market maker support all the way up the book, SETS is one of the most liquid electronic order books in Europe. It is this liquidity, underpinned by a rigorous rulebook and market supervision, coupled with the widest stock coverage, that attracts so many participants creating unrivalled opportunity to do business. Market participants can choose from 2 competing clearers ensuring anonymous pre and post trading, along with full counterparty protection.
As well as a significant improvement in latency, our Millennium Exchange trading system supports a wide array of order types, these include:
Passive Only. Ensures that the balance of an order would be expired immediately (after any executions against non-displayed orders priced within the visible Bid and Offer) rather than aggress a visible Bid or Offer on the book. Participants can also use the Passive Only order to specify that an incoming order should be accepted only if priced within a specified number of visible price points of the prevailing BBO (including the setting of a new BBO).
Stop Orders. Allow participants to enter an order that will be parked until the stop price is met. At this point the order will no longer be parked and will become a Market Order and execute at best.
Stop Limit Orders. Allow participants to enter an order that will be parked until the stop price is met. At this point the order will no longer be parked order and will become a Limit Order executing at no worst than participant’s required limit price.
Hidden Limit Orders. Allow participants to enter a non-displayed Limit Order where both the price and volume are hidden. This means that unlike an Iceberg Order (where there is a continual refresh in the visible peak size), other participants have no idea if it is there or not. Hidden Limit Orders can only be entered where it meets the Large Order Threshold as laid down in Millennium Exchange Business Parameters.
Mid Price Pegged Orders. Allow participants to peg their non-displayed order to, or at a differential to, the Exchange’s Mid Price. Mid Price Pegged Orders provide greater flexibility and increase the likelihood and immediacy of execution, whilst restricting information leakage and helping to reduce the total cost of trading. Mid Price Pegged Orders enable execution at the true mid price, i.e. within the tick size, so if the security is at a one tick spread, execution will occur at half a tick, delivering half a tick price improvement. Mid Price Pegged Orders can only be entered where it meets the Large Order Threshold.
Executable Quotes. For use of market makers that have registered in individual SETS securities, to provide fully visible, electronically executable, named, dual sided quotes that must meet prescribed size and spread requirements on entry.
SETS also now supports a Closing Price Crossing session, to allow further electronic trading opportunities at the official closing price for a period of time after the conclusion of the closing auction that generated it.
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