Market Report - Sept 2005
London Stock Exchange Plc
10 October 2005
News Release
10 October 2005
MR51-09.05
DERIVATIVES ACTIVITY CONTRIBUTES TO GROWTH IN SETS TRADING
Trading on SETS, the London Stock Exchange's electronic order book, continued to
show strong growth during September 2005, reflecting the increasing impact of
off exchange derivatives trading, now estimated to account for approximately one
third of the total value traded on SETS.
The total number of trades and value traded on SETS during the month both
increased 27 per cent on September 2004. There were 4.5 million SETS trades
worth £97.9 billion in September 2005, compared with 3.6 million SETS trades
worth £77.4 billion in the same month last year.
Included in the SETS figures are trades on SETSmm, the Exchange's hybrid
electronic order book, which had its strongest month to date. During the month
there were a record 752,207 SETSmm trades worth £6.5 billion. Compared with
September 2004, the average daily number of order book trades increased 131 per
cent to 34,191 and the average daily value traded increased 94 per cent to
£295.8 million.
Some of the SETSmm trading growth can be attributed to the recent transfer of
198 Main Market small cap securities onto SETSmm. Compared with their trading
performance during June 2005, their last full month on SEAQ, the transferred
stocks benefited from a 28 per cent narrowing in spread. The overall average
daily number of trades increased by 86 per cent and the overall average daily
value traded increased 25 per cent.
The total number of equity trades executed across the Exchange in September 2005
was 7.2 million, up 30 per cent on the total number of trades carried out during
September last year. The average daily number of trades during the month was up
30 per cent to 326,635 and the average daily value traded increased 19 per cent
to £21.5 billion.
Trading in ETFs and covered warrants also saw strong increases. The number of
ETF trades rose 48 per cent on September 2004 to 10,189 and the value traded
increased 167 per cent to £707.0 million. There were 5,591 covered warrant
trades with a value of £22.1 million, up 87 per cent and 100 per cent on
September 2004, respectively.
September was another good month for new issues on AIM with 33 companies joining
the market, raising £394 million between them. This brought the total number of
new issues on AIM during the calendar year so far to 389, raising a combined
total of £3.4 billion.
There were 22 business days in September 2005, the same number as in September
2004.
- ends -
For further information, please contact:
Simon Wheeler Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com
Notes to editors:
• About the London Stock Exchange
The London Stock Exchange is one of the world's foremost equity exchanges and a
leading provider of services that facilitate the raising of capital and the
trading of shares.
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:
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.
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 largest and most
successful companies, giving them access to one of the deepest pools of capital
in the world.
• 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
2005
2005 2004
DOMESTIC EQUITY TRADING Month Year to date Month Year to date
Equity Trading Value (£m) 217,841 1,835,991 209,990 1,750,764
Number of Equity Trades 5,458,724 46,580,232 4,560,454 39,691,634
INTERNATIONAL EQUITY
TRADING
Equity Trading Value (£m) 254,890 1,930,206 188,061 1,752,256
Number of Equity Trades 1,727,236 12,925,747 959,751 8,608,733
ORDER BOOK TRADING
Order Book Value (£m) 97,899 760,528 77,388 659,497
Order Book Trades 4,524,564 37,710,911 3,566,740 29,685,841
September 2005 September 2004
DOMESTIC MARKET CAPITALISATION (£bn) 1,766 1,412
TOTAL NUMBER OF COMPANIES 3,013 2,765
Main Market UK 1,368 1,473
Main Market International 334 356
of which techMARK 148 167
AIM 1,311 936
2005 2004
MONEY RAISED (£m) Month Year to date Month Year to date
UK: 394 6,353 667 4,642
New Equity Issues: Main Market & AIM
Further, Rights and Other 895 6,374 128 7,383
Bonds, Warrants, Fixed Interest 15,042 98,715 11,208 96,893
International:. - 3,077 - 587
New Equity Issues: Main Market & AIM
Further, Rights and Other 325 - 180
-
Bonds, Warrants, Fixed Interest 20,386 99,903 7,292 72,620
COMPANIES ADMITTED 34 458 31 275
This information is provided by RNS
The company news service from the London Stock Exchange
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