IOB Market Making

  • IOB Market Making
 
 

Market Making on IOB

  • Executable quote Functionality is available to regsitered market makers on a security basis.
  • There is no obligation on an issuer to have a registered market maker to remain on the IOB.
  • There is no upper limit to the number of firms that can register as a market maker in an individual IOB security.
  • Existing rules 4000 to 4110 of the Rules of London Stock Exchange will apply to each registering market maker (see Appendix 1)
  • Registered market makers in an individual IOB security are obliged to provide a two sided electronically Executable Quote in at least the Exchange Market Size for 90% of the continuous trading period and throughout the entire closing auction (including any extensions). There is no requirement to provide quotes during any intra-day (price monitoring) auctions or once the closing auction has been completed.
  • The Exchange Market Size is boradly set at approximately US$35,000 and is reviewed each quarter as part of the Exchange's quartlerly review process. the EMS for each security can be found in the List of Securities

Market Making Obligations

Market Making in IOB on the CCP Cleared

Section of IOB (segment IOBE)

Market Making in IOB on the Un-Cleared Section

of IOB (Segment IOBU)

Executable Quote in at least the Exchange Market Size for 90%

of the continuous trading period and throughout the entire closing

auction (including any extensions)

Executable Quote in at least the Exchange Market Size for 90%

of the continuous trading period and throughout the entire closing

auction (including any extensions)

Maximum Spread 5% subject to a floor of having to go

no lower than US$0.01

Maximum Spread 10% subject to a floor of having to go

no lower than US$0.03

Monthly market maker registration fee per security is £20

Monthly market maker registration fee per security is £nil

Exchange Charge unchanged

Exchange Charge for all IOB executions in that registered security

is 0.2 basis points of value of order executed subject to minimum

charge of 10p per executed order