Notice - N42/99

LONDON STOCK EXCHANGE
16 July 1999


For the attention of the
chairman/senior partner/compliance officer,
all member firms                                                         

STOCK EXCHANGE NOTICE                                           N42/99

CONFIRMATION ON PROPOSED RULE AMENDMENT

INPUTTING ORDERS TO THE ORDER BOOK

1. Stock Exchange Notice N27/99, issued on 4 June 1999, consulted on a
proposed new rule requiring member firms which provide automatic third party
order routing facilities to notify the Exchange when they commence, or cease
to provide, such facilities.

2. The consultation period for the rule amendment ended on 2 July 1999.  No
changes have been made to the proposed rule as a result of consultation. 
Accordingly, the confirmed rule and guidance are attached to this Notice. 
They will be effective from 2 August 1999.

3. Any member firm currently providing an automatic third party order routing
facility should notify the Membership Department, Market Regulation, in
writing, by this date.  Market Regulation may require more information on the
facility and internal controls and will contact the firm accordingly.

4. Member firms should not confuse this new rule with the existing requirement
for the Exchange to be able to identify the originating member firm from each
and every order routed entry as stated in the Regulatory Guide to SETS, August
1997.  This guidance has been updated and included in the attachment for
clarity.

5. Hole punched update pages for insertion into Stock Exchange rule books will
be issued in due course.



A E Scott-Bishop
Head of Regulatory Development


Any comments or queries on this Notice should be addressed to the Market
Regulation department, telephone [phone] (STX 31615).