Benefiting from the London Stock Exchange's technology and regulatory environment, the service will be supported by market makers who will make continual two-way prices in their selected stocks. Five firms - Peel Hunt, CSFB, Merrill Lynch, Winterflood and Optiver - have so far decided to become market makers. We anticipate that more will join as the service develops.
This service will enable private investors to utilise their existing broker relationship to trade in these international securities. This service will reduce substantially the cost of cross-border trading and settlement.
Investors will be aided by the London Stock Exchange's decision to make real-time prices in these securities available on its website.
Commenting on the service, Martin Wheatley, Deputy Chief Executive of the Exchange, said: "Until now, the cost of accessing overseas markets has been uneconomic for the UK private investor. By bringing trading and settlement costs into line with domestic equities, this service will go some way towards eroding old barriers, unlocking demand for international equities."
