IOB News- February 2015
Live 2 February 2015
London Stock Exchange introduces new International Order Book princing promotion
London Stock Exchange is pleased to announce enhancements to its International Order Book ("IOB") trading tariff through a pilot pricing promotion. This has been designed to encourage tighter spreads, greater depth of liquidity and improved execution likelihood on the order book, to the benefit of all participants.
The tariff enhancements that will be piloted for 6 calendar months, starting Monday 2 February 2015, are designed to incentivise participants who operate liquidity provision models in the most liquid IOB securities, defined as those on the FESE Table 1 tick size table (securities with a Trading Parameter of TP_99).
These enhancements, applied as supplements to the current Trading Services Price List for the duration of the pilot period, allow member firms that operate models that provide liquidity to London Stock Exchange's order book in the defined securities using their own risk capital*, to declare business using Native User IDs, FIX Trader Groups or TraderIDs. If 75% of the total monthly value traded in IOB FESE Table 1 securities through the declared UserIDs, Trader Groups or TraderIDs during continuous trading is passive, this passive trading will be charged at a promotional rate of 0.25bps subject to a minimum fee per executed order.
Furthermore as part of the same pilot scheme, member firms may also apply for a group of Native UserIDs to be nominated for use in relation to flow solely generated from an end-user client which is not a member firm ("Nominated Client") as identified in the relevant declaration. A separate group of UserIDs for each Nominated Client must be designated in a separate declaration. There will be a fixed monthly fee of £500 chargeable to the Member Firm for each Nominated Client. The value traded by each Nominated Client will not count towards the Member Firm’s cumulative value traded under the Standard Value Traded Scheme in the relevant securities.
The full revised and existing Trading Services Price Lists and the Member Firm declarations can be found at: www.lseg.com/prices
The revised Trading Services Price list will be effective from Monday 2 February 2015
* To qualify, orders cannot be related in any way to customer orders and must be in accordance with the terms of the price list and relevant declaration