Trading on LSE markets: 2001
London Stock Exchange Plc
20 December 2001
20 December 2001
40/01
EXCHANGE REPORTS RECORD TRADING YEAR ON ITS MARKETS
£12m investment in SETS trebles capacity
The London Stock Exchange today announced a record trading year in 2001. The
number of trades was 22 per cent higher than the year 2000, which itself was a
record year.
The Exchange also announced today the successful implementation in December of
enhancements to SETS, the Exchange's electronic trading platform. This £12m
investment has trebled the trading capacity of the platform.
To stay ahead of the rapid growth in its trading volumes, SETS was
transferred, through a major development operation, to new Compaq Tandem
hardware. The upgrade ensures that the Exchange can meet the ever higher
standards required by its customers for performance and capacity.
To complement these enhancements, Extranex(TM) - the Exchange's new global
internet protocol network - is planned for roll out to customers in April
2002. As well as substantially increasing network capacity it will allow for a
wide range of quality new products and services for Exchange customers.
The Exchange recorded a series of trading records during 2001, the year in
which it became a fully listed company:
* There were 50 million trades carried out on the Exchange's markets in
2001, 22 per cent higher than the 41 million trades in 2000.
* The development of the SETS electronic order book has been central to
the growth of trading activity. Order book trades accounted for a record £
660 billion worth of trading in 2001, passing the previous record of £531
billion set in 2000 by 24 per cent.
* The number of SETS trades was a record 15.9 million in 2001,
outstripping the previous record of 8.6 million trades set in 2000 by 85
per cent.
Trading on the electronic order book during 2001 accounted for as much as 63
per cent of the value of trades in SETS stocks in any one month. The average
figure throughout 2000 was 52 per cent.
David Lester, Chief Information Officer, commented:
'Electronic trading on our markets continued to grow at a phenomenal rate this
year - our customers clearly value our electronic order book, SETS. Our
commitment to IT infrastructure investment underpins SETS' success and will
enable the Exchange to bring quality new products and services to market, a
number of which are already planned for 2002.'
Explaining the trend of increasing trading activity, Chris Broad, Head of
Broker Services, added:
'SETS is a reliable, flexible and scalable trading system that can handle
these massive volumes from increasingly sophisticated traders. Its
attractiveness has been a crucial factor in driving this year's increased
market volumes. Other factors that have contributed include the increasing
popularity of hedging and the benefits of the central counterparty that we
introduced in February.'
The Exchange's trading performance was also boosted in 2001 by a range of new
products, including the International Order Book (IOB) and International
Retail Service (IRS). The IOB introduced order driven trading for 84 of the
more liquid emerging market stocks. The IRS gives retail investors access to
243 international blue chip stocks, quoted in sterling.
- ends -
For further information, please contact:
John Wallace Press Office +44 (0)20 7797 1222
press@londonstockexchange.com
Notes to editors:
* Trading figures include estimates for December 2001.
* The Exchange's main market and AIM accounted for 60 per cent of all IPOs
in western Europe during the period 1 January - 30 November 2001. Source:
London Stock Exchange, Thomson Financial and individual exchange websites.
* SETS, the electronic order book:
It is now over four years since the launch of SETS and the service
continues to go from strength to strength. Overall, the market is
benefiting from tighter spreads, greater liquidity and lower execution
costs. 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.
For more information see: 'SETS - four years on' available at
www.londonstockexchange.com/trading/pdfs/sets4years.pdf
SETS was migrated to Compaq Tandem Himalaya S-series servers in December
2001.
* Extranex(TM) is the new communication service from the London Stock
Exchange, enhancing connectivity and bringing our customers increased
capacity, compatibility and accessibility. Built on a resilient, private
internet protocol network, the industry standard for data communications,
Extranex(TM) enables the Exchange to develop new markets and deliver new
products faster.
Following the transition to Extranex(TM), the Exchange's customers will have
access to a range of new initiatives the Exchange plans to introduce,
including: RSP gateway, Crest network service provision, covered warrants
and added value real-time information services.
Latest directors dealings
- 1 day ago Savannah Energy
- 1 day ago Buccaneer Energy PLC
- 1 day ago Savannah Energy
- 1 day ago Carclo
- 1 day ago Schroder Japan Growth Fund