The London Stock Exchange uses cookies to improve its website. The cookies for analytical purposes have already been set. For more details and how to manage cookies, please see our privacy and cookies policy.

Rulebook FAQs


Below is a list of our Rule book related frequently asked questions for our current member firms.


How can I get a copy of the Rules of the London Stock Exchange?

Click on the link to download a copy of the Rules of the London Stock Exchange.

 

When do I need to agree whether a trade is on Exchange or not?

According to Rule 3000, member firms must agree with their counterparty or customer at or prior to the time of effecting a trade whether the trade is to be conducted under the rules of the Exchange.


This is important as subsequent trade reporting Rules 3010, 3011 and 3012 are all reliant on a clear decision whether or not a trade is on Exchange.


Click on the link for Rules of the London Stock Exchange.

 

When am I required to agree the trading venue?

Member firms must agree the trading venue at or prior to the time of the trade, failure to do so may lead to a number of consequences such as:

  • duplicate publishing trade reports across two different venues
  • no publishing trade reports at all
  • incorrect venue ID on trade confirmations and contract notes
  • incorrect venue ID on transaction reports to the component authority
  • trading away from a regulated market or MTF where no prior client consent has been given.

What are the benefits of trading on Exchange versus OTC (Over The Counter)?

There are a number of benefits of trading on Exchange:

  • Transparency, all trades executed on our order book will be automatically reported and available to the whole market
  • All trades executed on Exchange will benefit from our rule book and regulatory safeguards
  • All trades executed OTC will require prior client consent (under MiFID firms will need to ensure prior client consent to trade OTC). This is not required for trades executed on Exchange.

Follow the link for more information on MiFID and trading on and off Exchange.

Why should I choose the London Stock Exchange as my best execution venue?

Our markets provide the tightest spreads with the most depth and liquidity; reliably, and at speed, all day, every day. We are an independent, regulated and trusted provider committed to increasing price transparency and delivering quality trade data to aid growth in liquidity.


MillenniumIT™, our next generation trading system launched in June 2007, has delivered a step-change in performance:

  • average round trip speed of trading is now 6 milliseconds
  • enhanced functionality for our markets.


For more information on the London Stock exchange best execution venue follow the link.


Which party has the trade reporting responsibilities?

Please see Rules 3012 and 3013 which outline the responsibilities for the submission of a trade report.


Follow the link for the Rules of the London Stock Exchange.

 

Table below shows trade reporting responsibilities between buyer and seller.

Rulebook graph

What are the trade reporting requirements if a member firm is interposed between two principal trades?

Typically there is a market side and a client side and it is possible for both legs, one leg or neither leg to be conducted on Exchange in accordance to Rule 3000. Details on this are provided in the guidance to the Rule 3011.


The Rules of the London Stock Exchange can be found by clicking on the link.

 

What are the trade reporting deadlines?

Trade reports need to be submitted as close to real time as possible, and in any case within 3 minutes of execution in accordance with Rules 3020 and 3021.


The Rules of the London Stock Exchange can be found by following the link.

Please note that trade reporting period is the period each day between 07:15 hours and 17:15 hours or 08:15 hours and 18:15 hours Central European Time.

 

What is the distinction between agency and principal trading?

An agent is a member firm acting on behalf of a customer or counterparty in an agency capacity. Principal is a member firm or other person acting as principal.

 

What are the reporting responsibilities for agency cross trade?

As detailed in the guidance to Rule 3010, an agency cross trade should be reported with a single trade report.


The Rules of the London Stock Exchange can be found by following the link.

 

When can the deferred publication regime be used?

A member firm should only request deferred publication where the member firm is dealing on its own account (as principal) and the transaction is between the member firm and its customer.

 

How can I request deferred publication of a trade?

A member firm may request deferred publication of a trade by submitting a trade report with either the ‘OK’ (for an ordinary trade) or ‘NK’ (for a negotiated trade) trade type. MillenniumIT will determine whether a delay should be applied based on the relevant publication regime.

 

Where can I find the details of new trade type indicators?

You can download a table with new trade type indicators from MillenniumIT parameters spreadsheet by following the link and clicking on ‘trade types’ tab.

 

Where can I find a breakdown of ADT values for equities?

To see a full breakdown of ADT values for equities you can download MillenniumIT parameters spreadsheet and click on ‘equity delay regime’ tab.
 

How are the ADT values are determined?

For MiFID stocks

1. Stocks traded in € - ADT values are taken from CESR database

2. Stocks traded in £ - ADT values are taken from FSA list

3. Stocks not traded in either € or £ - ADT taken from CESR and converted to the relevant currency using an internal LSE FX rate (value rounded to a more suitable number)


For non MiFID stocks

1. ADT has been calculated using the same formula as used by CESR based on a years trading volumes. These figures have been calculated in traded currency (value rounded to a suitable number)


The link to the FSA's website explains where the various parts of the detailed calculation can be sourced from.

 

When should I not request additional deferred publication of a trade?

As stated in the guidance to Rule 3030, a member firm cannot delay the publication of a trade:

  • where a member firm is acting in an agency capacity
  • where a trade is in a security involved in a bid situation as notified to the Exchange by the Panel on Takeovers and Mergers
  • offsetting an existing deferred publication
  • in a security that is suspended.


Click on the link for the Rules of the London Stock Exchange.

 

What is a negotiated trade?

A negotiated trade is a trade conducted in an EU regulated market security that is not subject to pre-trade transparency on our markets and which is on terms that are no worse than those that could be achieved on the relevant Exchange order or quote book, (or where the share is not traded continuously, and is on terms that are no worse than those that could be achieved on a relevant venue with continuous trading), after taking into account any relevant trading, settlement and clearing costs.

 

When can the ‘negotiated trade’ report be used?

The introduction section of the revised rulebook and the additional guidance to rule 3040 provide information on when a ‘negotiated trade’ report can be used.

 

Where can I find more information on trade reporting?

Further useful information on trade reporting can be found in the FSA Market Watch 23, published in September 2007.

 

Where can I find more information about the new Rules of the London Stock Exchange?

For more information on the new Rules of the London Stock Exchange follow the link.

 

Where can I find more information about disaster recovery?

Please follow the link to the Rules of the London Stock Exchange. Please refer to Rule 1500 and supporting guidance.

 



.

The Exchange accepts no responsibility for the content of the website you are now accessing or for any reliance placed by you or any person on the information contained on it.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds.

You are accessing the London Stock Exchange Annual Report Service powered by PrecisionIR.

The Exchange accepts no responsibility for the content of the reports you are now accessing or for any reliance placed by you or any person on the information contained therein.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds