The Exchange has received registrations from 31 market makers who together will support the 198 stocks traded on SETSmm. The average number of market makers per stock is eight and a half; each traded security has at least five registered market makers available.
UBS, has announced its intention to make markets in all FTSE 250 stocks traded on SETSmm while a further six market makers have registered in 100 or more SETSmm securities.
Alex Easton, Head of European Equities at UBS Investment Bank, said: "SETSmm is an exciting new initiative that recognises the importance of market maker support in mid-cap stocks. UBS is delighted to support this new market structure which will enhance liquidity and execution for our clients."
SETSmm is a trading service for FTSE 250 securities currently traded on SEAQ, and other qualifying securities. It will be an electronic order book based on SETS with the added support of continuous liquidity provision from registered market makers. The effect will be to combine the best of the Exchange's SETS order book with the service and expertise of the London market making community.
Commenting on the new service, Martin Graham, Director of Market Services at the London Stock Exchange, said: "SETSmm is the most significant and exciting development in UK equity markets since the introduction of SETS in 1997. The new market is a natural progression to SETS and will enable a further 198 securities to benefit from the virtuous circle of increased liquidity, tighter spreads and increased trading levels.
"We are delighted to have the support of the world's leading market makers in this venture, and with this support we are confident that SETSmm will form the basis for a future increase in the number of securities traded electronically."
On Monday 22 September, the Exchange introduced iceberg functionality to its trading system allowing order book participants to enter large orders onto the book while revealing only a portion to the market. These Iceberg orders are eligible for SETS and the International Order Book (IOB) as well as SETSmm, and allows users to work larger orders through the book with reduced market impact, whilst reducing price volatility and increasing liquidity.
