10 Paternoster Square
London, EC4M 7LS
Telephone 020 7797 1000
www.londonstockexchange.com
18 January 2010
Service Announcement 001/180110
Order book for Retail Bonds: Trading Services Price List effective 1 February 2010
In February 2010, the London Stock Exchange will introduce the Order book for Retail bonds trading service. This new order-driven trading service will be offered for a select number of gilts and UK corporate bonds and has been developed in response to strong demand from retail investors for access to an on-screen secondary market in fixed income securities.
The purpose of this announcement is to advise customers of the pricing structure for this new service, which will be reflected in a Trading Services Price List effective 1 February 2010.
Further updates regarding the new service will be issued via Service Announcement in due course.
Summary of pricing structure
· A flat fee of 90p will be charged per order executed on the order book, without reference to the number of executions incurred. Where an order executes over multiple days a charge will apply on each day it executes.
· For an introductory period market makers will be exempt from the order execution charge in securities admitted to the Order book for Retail Bonds in which they are registered.
· Off book trade reporting in Order book for Retail Bonds securities will follow a value based tariff in line with other gilt-edged and fixed interest securities on our markets. The minimum charge for reported trades will be aligned with the order execution charge at 90p.
The tariff is designed to provide predictability of pricing for all customers and to encourage the development of order book liquidity.
The price list effective 1 February 2010 can be found at:
http://www.londonstockexchange.com/prices
The Service & Technical descriptionforthe Order book for Retail Bonds can be
found at:
http://www.londonstockexchange.com/information-providers/technical-library/technical-guidance-notes/uk-mot-service-tech-description.pdf
If you require further information on the Order book for Retail Bonds please contact Gillian Walmsley on 020 7797 3679 or Kara Hyne on 020 7797 1608.
London Stock Exchange Group plc. Registered in England & Wales No 05369106