LSE Looks to Improve Liquidity in SETSqx

View of the London Stock Exchange from above
Paternoster Square, London

Four of the major changes being made to the SETSqx, which are set to be implemented during Q3, affect the length and time during which auctions take place.

Auctions will be held evenly during the day, with the first auction uncrossing at 9:00 a.m. Elongated auction call periods will now be dropped to 10 minutes, and five minutes for the closing auction. Orders can still be inputted throughout the trading day after 8:50 a.m., but they will only be visible in the auction call periods. After the closing auction, the closing price crossing session will be implemented for further trading at the closing auction price, and will follow the current closing employed process for SETS.

The decision to make alterations to the SETSqx comes after the LSE held a market consultation on the trading of securities outside of the FTSE 350 index between December 2013 and January 2014. 

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