London Stock Exchange: SETSmm Contributes To Growth In Order Book Volume During May

SETSmm, the London Stock Exchange’s hybrid trading system, showed particularly strong growth during May 2005. During the month, the average daily number of order book trades increased by 110 per cent on May 2004 to 28,819 and the average daily value traded increased 57 per cent to £251.6 million.

SETS overall accounted for a significant proportion of the growth in trading activity during May with a total of 4,010,602 trades, an increase of 29 per cent on the number of trades on SETS in May last year. The average daily number of trades increased 23 per cent to 200,530. The total value traded on SETS for the month was £73.0 billion, up 3 per cent on the total value traded on SETS during the comparable period last year.

The total number of equity trades carried out across the Exchange during the month was 6,206,471, up 25 per cent on the total number of trades carried out during May last year. The average daily number of trades was up 19 per cent to 310,324 and the average daily value traded was £19.2 billion.

ETF trading also continued to grow, with the average daily value traded in ETFs up 21 per cent on May 2004 to £30.1 million, and the average daily number of trades up 14 per cent to 472.

The primary market saw a total of 28 IPOs. Of these, 5 were IPOs on the Main Market, including one international company, raising a total of £805.8 million between them. There were 23 IPOs on AIM during the month raising £328.6 million between them.

There were 20 business days in May 2005, compared with 19 in May 2004.

Background:

• About the London Stock Exchange

  The London Stock Exchange is one of the world’s leading equity exchanges and an international provider of services that facilitate the raising of capital and the trading of shares and debt securities.

  The London Stock Exchange is the most international equities exchange by trading in the world and Europe's largest pool of liquidity. In 2004, 80% of all European IPOs floated in London. By the end of 2004, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £3.5 trillion, with £4.7 trillion of equity business transacted over the year.

  The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.

  Companies considering flotation have a choice of markets:

  Main Market
  The London Stock Exchange’s Main Market for established companies seeking international recognition is one of the world’s best known, longest established and most liquid markets. It is home to some of the world’s most successful companies, giving them access to one of the deepest pools of capital in the world.

  AIM
  AIM is the London Stock Exchange’s international market specifically designed for smaller, growing companies, combining the benefits of a public flotation with appropriate levels of regulation.

• IPO

  An IPO or Initial Public Offering is when a new company joins one of our markets and raises capital by issuing shares. This excludes transfers and introductions (when companies join the market without raising money).

• Indices

  Indices are calculated and managed by FTSE Group, a world-leader in the creation and management of global equity indices. The FTSE Group is jointly owned by the London Stock Exchange and the Financial Times, but operates as a wholly autonomous company.

  For information about the company or any FTSE indices, please contact media@ftse.com

• SETS – the electronic order book

  It is over seven years since the launch of SETS and the service continues to go from strength to strength. Overall, the market is benefiting from tighter spreads and greater liquidity. Usage of SETS continues to grow, as shown by recent record increases in the number of orders entered, the number of firms using the order book and order book share of business.

• SETSmm

  SETSmm is the Exchange’s successful trading service for FTSE 250 and other leading non order book securities. By combining the best features of the existing SETS and SEAQ trading services, SETSmm appeals to market users who want to trade electronically, as well as those customers who use the market making system.

• Retail Trading Figures

  Retail trading figures are available from our website at –
  www.londonstockexchange.com/en-gb/products/membershiptrading/retailtradestat
  Figures are available from November 2002 to date.

  LONDON STOCK EXCHANGE MONTHLY FACTSHEET FIGURES

  May 2005

  	2005			2004
  DOMESTIC EQUITY TRADING	Month	Year to date		Month	Year to date
  Equity Trading Value (£m)	179,110	1,001,951		189,621	1,015,814
  Number of Equity Trades	4,863,644	25,304,131		4,085,434	22,632,074
  INTERNATIONAL EQUITY TRADING
  Equity Trading Value (£m)	204,162	1,035,713		199,065	1,023,417
  Number of Equity Trades	1,342,827	6,325,621		881,289	4,837,603

  ORDER BOOK TRADING
  Order Book Value (£m)	73,050	393,091		71,022	375,432
  Order Book Trades	4,010,602	20,235,921		3,107,728	16,333,810

  	May 2005	May 2004
  DOMESTIC MARKET CAPITALISATION (£bn)	1,532	1,371
  TOTAL NUMBER OF COMPANIES	2,953	2,711
  Main Market UK	1,416	1,513
  Main Market International	340	369
  of which techMARK	156	177
  AIM	1,197	829

  	2005		2004
  MONEY RAISED (£m)	Month	Year to date	Month	Year to date
  New equity issues: UK Main Market and AIM	1,033	2,779	334	1,640
  Further, Rights and Other	447	2,580	2,860	5,493
  Bonds, Warrants, Fixed Interest	8,996	60,214	9,449	59,318
  New equity issues: International Main Market	312	1,346	268	487
  Further, Rights and Other	75	143	11	122
  Bonds, Warrants, Fixed Interest	9,599	42,169	12,086	46,103
  COMPANIES ADMITTED	43	254	29	120