GEMM signs up to electronic bond market

GEMM signs up to electronic bond market

  • Jefferies to participate in gilt trading on order book

The London Stock Exchange today announces that Gilt-Edged Market Maker (GEMM) Jefferies International Limited has started trading in gilts on its Order book for Retail Bonds (ORB). Jefferies, which joins dedicated market maker Evolution Securities in offering electronic trading in UK gilts, will provide additional liquidity on the order book. Through the ORB, investors can enjoy simple, transparent access to government debt. Trading in the gilts, as with all other bonds available on ORB, does not attract stamp duty.

Pietro Poletto, Head of Fixed Income Markets at London Stock Exchange Group, said:

"We are delighted to welcome Jefferies as a new participant on our electronic bond market. As a GEMM, they bring a unique expertise to the gilt market, and investors now have greater choice available to them when trading gilts through our order book."

Emanuele Caloia, Managing Director at Jefferies International Limited, said:

"By partnering with the London Stock Exchange we have opened up an important distribution outlet for UK Government bonds to the global Jefferies client base. This is further evidence of Jefferies' intention to support innovation in the marketplace and grow its world class fixed income business by providing a new liquidity outlet for both issuers and investors."

Launched on 1 February 2010 in response to strong private investor demand for greater access to fixed income, the new order book now offers access to 50 UK gilts, 24 corporate bonds and two supranational bonds all tradable in easily manageable sizes. As well as UK government debt securities, corporate bonds currently available for trading include securities issued by Lloyds TSB, Provident Financial, Tesco, BT, National Grid, GlaxoSmithKline, Unilever, Vodafone, Marks & Spencer, Kingfisher, Safeway, Morgan Stanley, GE Capital, Enterprise Inns, Royal Bank of Scotland and Wal-Mart.

Over the last year, Jefferies has been designated a Primary Dealer in the US, UK, Portugal, Germany and the Netherlands. Most recently, Jefferies was named as a member of the Austrian Federal Financing Agency's Auction Panel, enabling Jefferies to participate in all Austrian Financing Agency offerings. Globally, the firm's broad fixed income effort encompasses more than 400 professionals focused on the sales and trading of investment grade corporate bonds, high yield bonds, government and agency securities, repo finance, mortgage- and asset-backed securities, municipal bonds, whole loans, leveraged loans, distressed securities and emerging market debt.

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Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group is Europe's leading diversified exchange business, incorporating Borsa Italiana and the London Stock Exchange. With over 500 member firms and more than 3,000 companies quoted across its markets, the Group operates the largest and most liquid equity marketplace in Europe.

The London Stock Exchange itself is the world's most international exchange with more than 600 overseas companies from over 70 countries. These figures include international companies quoted on the Alternative Investment Market (AIM), the London Stock Exchange's growth market, and the world's most successful market for small and medium sized enterprises with over 1,200 companies.

The Group offers trading in a wide range of instruments, holding the number one position in the trading of exchange-traded products (ETFs and ETCs) and through its interest in MTS, is Europe's leading platform for the trading of fixed income products. Through the Order Book for Retail Bonds and Mercato Telematico delle Obbligazioni (MOT) the Group also offers a comprehensive range of UK and European corporate and government bond trading services. Its Italian Derivatives Exchange Market (IDEM) sees over €2.5 billion worth of trading every day and through EDX London the Group provides a facility for the trading of Scandinavian and Russian equity derivatives.

London Stock Exchange Group also offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis. These include services from Monte Titoli, the Central Securities Depository for all Italian financial instruments, and Cassa di Compensazione & Garanzia (CC&G), which in July 2009 was granted Recognised Overseas Clearing House (ROCH) status by the FSA to operate in the UK.

With the acquisition of MillenniumIT, the Group encompasses a leading developer of low cost high performance trading platforms and financial markets software serving both the industry and the Group's own businesses.

Since February 2010 London Stock Exchange Group has owned a majority stake in Turquoise, a Multilateral Trading Facility (MTF) providing pan-European and US lit and dark equity trading in some 2,000 securities across 19 countries.

About Jefferies:

Jefferies, a major global securities and investment banking firm, has served companies and their investors for more than 48 years. Jefferies & Company, Inc. is the principal US operating subsidiary of Jefferies Group, Inc. (NYSE: JEF:, and Jefferies International Limited is the principal UK operating subsidiary. Jefferies International Limited, a UK-incorporated company, is authorised and regulated by the UK Financial Services Authority.