London Stock Exchange today welcomed Peel Hunt to open London's markets to celebrate the company becoming the latest dedicated market maker to its Order Book for Retail Bonds (ORB). Peel Hunt, the independent broking and advisory house will join six existing market makers on the UK's electronic order book for the trading of retail-sized bonds.
Peel Hunt has a proven track record in market making and fixed income trading and will quote continuous two-way pricing throughout the trading day in all corporate bonds on ORB.
In 2011, ORB raised over £870 million, demonstrating good investor appetite from a diverse range of issuers. Since its launch in February 2010, ORB has raised over £1.3 billion.
Pietro Poletto, Head of Fixed Income at London Stock Exchange Group, said:
"We are delighted to welcome Peel Hunt as a market maker to the UK's retail bond market. ORB has already seen promising growth, with funds raised exceeding £870 million in just its second year of trading. By offering continuous two-way pricing in all corporate bonds on ORB, dedicated market makers such as Peel Hunt bring added liquidity and depth to the market, which will only encourage further private investor participation for the year ahead."
Tim Waters, Head of Fixed Income at Peel Hunt, said:
"We have seen growing interest in the retail bond market from a wide range of issuers looking to diversify their funding. The increased competition in pricing offered by ORB will tighten spreads and help develop a highly efficient secondary market in the UK dedicated to retail bonds."
