IOB Newsletter - January 2015
IOB Liquidity Provision Scheme live 2 February 2015
Latest news: IOB Liquidity Provision Scheme live 2 February 2015
A pricing promotion on the IOB will be introduced, to encourage tighter spreads, greater depth of liquidity and improve execution likelihood on the order book, to the benefit of all participants.
If 75% of a participant's total monthly value traded in IOB FESE Table 1 securities through declared UserIDs, Trader Groups or TraderIDs during continuous trading is passive, this passive trading will be charged at promotional rate of 0.25bps subject to a minimum fee per executed order.
Looking back in 2014....
Cash equity trading:
- The IOB cash markets traded nearly $188bn in 2014, up 4.7% from 2013.
- 3 Listings- Lenta, Electrica and TBC Bank- joined the IOB. Among the 138 IPOs on the LSE, 26 have major operations outside the UK, including 7 in Israel and 6 in China and Hong Kong.
- Based on feedback of market consultation, the FESE 1 tick table was introduced in February for the most liquid IOB securities.
- In November, the FESE 3 tick table was introduced on the IOB and criteria for allocating IOB securities in the three different tick tables was announced. Encouraging early signs indicate that average spreads have remained largely unchanged and average volume at the Best Bid Offer (BBO) has increased by nearly 60% for securities which have moved to the new tick table, with 81% of those individual securities seeing an increase in size at touch.
- Standard settlement cycle was changed to T+2 for the majority of securities, including the IOB, in October.
- Asian securities accounted for c.5% of the book turnover and c.12% if the off-book.
- London Stock Exchange Group signed MOUs with Bank of China, Agricultural Bank of China and China Construction Bank, which outlined areas of collaboration in capital markets.
- London Stock Exchange Group signed a partnership agreement with Casablanca Stock Exchange. Read more>
- Growth of IOB DR futures in 2014 with 923,860 contracts traded, up 239% YoY
- 32% of the flow traded on-book in December, a record level of on-screen activity and a steady increase from January
- LSEDM received class no-action relief status from the SEC, to offer certain US investors its UK and IOB stock, depositary receipt and index options. Read more>
- Dividend Neutral Single Stock Futures have been available for clearing on Gazprom, Sberbank, Lukoil, MMC Norilsk, Rosneft and VTB since October. Read more>
- Cash settled IOB DR options and UK stock options are also now available for Trade Reporting. Read more>
- Susquehanna International Securities became a Primary Market Maker for IOB derivatives.
Key events & Marketing in 2014:
- Annual Russia & CIS Conference in Moscow, 4th June. Read More>
- LSEG Greater China Forum in Hong Kong, 9th June. Read More>
- Launch of webpages in Chinese and Russian languages
- CIS & CEE Day: London, 26th March
- Annual Russia & CIS Conference in Moscow, June
- LSEG Greater China Forum in Hong Kong, June