4 August 2009 07:30

Service Announcement 001/040809

Revision of Trading Service Selection criteria and transfer of 83 securities from SETS to SETSqx

The London Stock Exchange (“the Exchange”) regularly reviews the securities on its markets and has been working with the market making community and individual issuers to enhance the tradability of smaller securities.

The purpose of this Service Announcement is to provide revised guidance on the criteria for the selection of a non-index security’s Trading Service and the transfer between Trading Services of 83 securities as a result of this new guidance.

Appendix A sets out the revised criteria for Trading Service selection which will be included in the TradElect Parameters Document. All constituents (and where applicable reserves) of FTSE All Share and FTSE AIM UK 50 indices will remain traded on SETS. Subject to the issuer’s agreement, registered Market Makers may request the transfer to SETSqx of any other non-index security.

Appendix B sets out the 83 securities that will be moving from SETS to SETSqx. These changes will be effective from the start of trading on 10 August 2009.

More information on how SETS and SETSqx operate can be found at:

TradElect & Infolect Production Administration

Customers are advised to take either:

  • Reference Data Changes on the evening of 7 August 2009, or the
  • Full Reference Data Download on the morning of 10 August 2009

Appendix A - Service Announcement 001/040809

Trading Service selection criteria

SETS – Full electronic order book, incorporating executable market making liquidity provision

  • All constituents of FTSE All Share Index
  • All constituents and reserve list members of the FTSE AIM UK50 Index
  • New trading lines that by their size are likely to fall within the above criteria within next 3 months
  • Where the issuer (or its adviser) has requested subject to the following:
  • Electronically settleable in CREST;
  • Eligible for central counterparty clearing; and
  • Support of at least 1 market maker that will register to provide a two way obligation of at least £2,500

SETSqx– Non-electronically executable market maker quote provision with the addition of 4 daily standalone electronic auctions.

  • All domestic Main Market equity securities that are not on SETS
  • AIM securities that have previously traded on SETS or have less than 2 registered market makers
  • New trading lines which do not meet the SETS criteria and the issuer has not expressed a preference for SEAQ
  • Where the issuer (or its adviser) has requested and the security has not been a constituent or reserve list member of FTSE All Share or FTSE AIM UK50 indices for at least 3 months
  • Where the majority of registered market makers by value traded on Exchange in the previous 3 months ( that express a preference) have requested subject to the following criteria:
  • the issuer provides consent; and
  • the security has not been a constituent or reserve list member of FTSE All Share or FTSE AIM UK50 indices for at least the 3 previous months.

More information on how SETS, SETSqx and SEAQ operate can be found at:

London Stock Exchange Group plc. Registered in EnglandWales No 2075721