14July2010

Service Announcement 001/140710

Introduction of dynamic tick regime for Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs)

The purpose of this announcement is to inform customers that a dynamic tick regime will be introduced for ETFs and ETPs. These instrumentscurrently have static price format codes which are assigned to each instrument.

The dynamic tick regime will standarise the price format codes and tick sizes used across the product range, and ensure consistency if an instrument is traded in more than one currency.

ETFs and ETPs trade on SETS in trading segments ETFS, ETF2, ETFU, ETCS, ETC2 and ETCU.

Details of the full dynamic price format schedule for ETFs and ETPsis set out below:

Dynamic Price Format schedule ETFs and ETPs
Segments ETFS, ETF2, ETFU, ETCS, ETC2 and ETCU
Range / Price Format Code / Price Format Description / Price Format Value
GBX
Less than 10 / V / Twentieths / 0.05
10 - 499.9 / X / Tenths / 0.1
500 - 999.75 / Q / Quarters / 0.25
1000 or more / W / Whole / 1
GBP / USD / EUR
Less than 0.1 / Y / One two-thousandth / 0.0005
0.1 – 4.999 / M / One thousandth / 0.001
5 – 9.9975 / L / One four hundredth / 0.0025
10 or more / J / One hundredth / 0.01

All ETFs and ETPs will migrate to the dynamic tick regime, with the exception of the instruments listed in Appendix A which will retain a static price format code as indicated.

A list of the instruments migrating to the dynamic tick regime and confirmation of all exceptions will be distributed via the Datasync service on Friday 23rd July.

Any future changes will be notified in the normal way via the Datasync service.

Schedule for introduction of changes

The Customer Development Service (CDS) will be updated with these changes from start of trading on Monday 19 July2010.

Production (LIVE) will be updated with these changes from start of trading on Monday 26July 2010.

Administration

Customers are advised to take either the Reference Data Changes service for CDS on Friday 16 July2010 or to take the Full Reference Data Download CDS Service Channels on Monday 19 July2010.

Production customers are advised to subscribe to the Reference Data Changes on Friday 23 July2010 or the Full Reference Data Download Service on Monday 26July2010.

The TradElect Parameters document will be updated immediately before the above changes are implemented and it can be accessed as a download from the following link:

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