Service Definition - TRADING AND INFORMATION SERVICES
Service Definition - TRADING AND INFORMATION SERVICES
Service Definition TRADING AND INFORMATION SERVICES Issue 14 Title: SERVICE DEFINITION – TRADING AND INFORMATION SERVICES Ref No: TIS101 Issue: Issue 14 Date: December 2006
TIS101 2 Copyright 2006 London Stock Exchange plc Issue 14 This confidential document is the property of The London Stock Exchange plc trading as the London Stock Exchange and neither the document nor its contents may be disclosed to a third party, nor may it be copied, without the London Stock Exchange’s prior written consent. The Exchange endeavours to ensure that the data and other material in this publication are correct and complete but does not accept liability for any error herein or omissions herefrom.
The development of Exchange products and services is continuous and published information may not be up to date. It is important to check the current position with the Exchange. The following are trade/service marks of the London Stock Exchange: UK Trades International Trades UK Bests International Bests UK Orders and Quotes International Quotes UK Official List Infolect EXTRANEX RNS TradElect TM SETSqx SETS SETSmm SEATS SEAQ EUROSETS Amendment Indication To indicate the location of an amendment within the text of this issue, a right-hand marginal rule is placed alongside the amended part of the text (as shown against this paragraph).
This indication will only appear in issues subsequent to Issue 1. Also, these amendment indications will only apply to changes introduced from one issue to the next. All amendment indications from earlier issues will be deleted.
Copyright © 2006 London Stock Exchange plc. All rights reserved. No part of the publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photo-copying, recording or otherwise without the prior permission of the copyright owner.
TIS101 Issue 14 Copyright 2006 London Stock Exchange plc 3 PREFACE This publication, together with its associated publications, describes the trading and information services provided by the London Stock Exchange. Associated Publications This document is one of four printed specifications, supplied as a set, to support the Exchange's trading and information services.
The other three printed documents are: Interface Specification (Ref: TIS102) Network Specification (Ref: TIS103) Data Formats (Ref: TIS104) In addition, the Exchange will publish the following document, but in electronic form only.
Market Configuration Matrix (Ref: TIS105) This Interface Specification has been written to explain generic messages and functions and is predominantly message version independent. Where messages do have multiple message versions, readers are advised to refer to the 'Message Layouts' section of Data Formats TIS104. Copies of these documents and further information can be obtained from the technical library on the London Stock Exchange web site at http://www.londonstockexchange.com/en-gb/products/membershiptrading/techlib / This document provides a high level overview of the Exchanges’ Trading and Information services only.
Readers who require a more detailed understanding of these services should refer to the ‘Guide to Trading Services’ document which is available on our website at http://www.londonstockexchange.com/NR/rdonlyres/C50E4770-12CE-4FB7-8058-075 2C44F790F/0/GuideToTradingServicesv70.doc
TIS101 4 Copyright 2006 London Stock Exchange plc Issue 14
TIS101 Issue 14 Copyright 2006 London Stock Exchange plc 5 Table of Contents Section Page 1 INTRODUCTION 7 1.1 The Service Definition 7 1.2 Service Changes 8 1.3 Readership 8 1.4 Enquiries 8 1.5 Web Site 8 2 TRADING SYSTEM AND SERVICES 9 2.1 Introduction 9 2.2 Trading Infrastructure 9 2.3 Trading Interface 10 2.4 SETS - Service Content 11 2.5 SETSmm - Service Content 12 2.6 SEAQ - Service Content 12 2.7 SEATS PLUS - Service Content 13 2.8 SETSqx Service Content 13 2.9 International Order Book – Service Content 13 2.10 International Retail Service – Service Content 14 2.11 International Bulletin Board 14 2.12 Covered Warrants – Service Content 15 2.13 Exchange Traded Funds 15 2.14 Exchange Traded Commodities 15 2.15 Multiple Markets 16 2.16 Own Order Book Download – Service Content 16 2.17 Own Trades Book Download – Service Content 17 3 BROADCAST SERVICES – INFOLECT 19 3.1 Introduction 19 3.2 Information Feed - Infolect 19 3.3 Interfaces used for the Broadcast Services 20 3.4 Infolect Service Content - Service Channels 21 3.4.1 UK Level 1 22 3.4.2 UK Level 1 Plus 23 3.4.3 UK Level 2 24 3.4.4 UK Reference Data 25 3.4.5 International Level 1 26 3.4.6 International Level 1 Plus 27 3.4.7 International Level 2 28 3.4.8 International Reference Data 29 3.4.9 Dutch Trading Service Level 1 30 3.4.10 Dutch Trading Service Level 1 Plus 31 3.4.11 Dutch Trading Service Level 2 32 3.4.12 Dutch Trading Service Reference Data 33
TIS101 6 Copyright 2006 London Stock Exchange plc Issue 14 Section Page 3.4.13 Covered Warrants Level 1 34 3.4.14 Covered Warrants Level 1 Plus 35 3.4.15 Covered Warrants Level 2 36 3.4.16 Market Status Indicators 37 3.4.17 Market Reference Data 38 3.4.18 RNS News 39 3.4.19 DOL (Full) 40 3.4.20 DOL (Changes) 40 3.5 Infolect Service Content - Broadcast Data Groups 41 3.5.1 JSE Orders 41 3.5.2 JSE Market Status Indicators 41 3.5.3 JSE/NSX Trades 42 3.5.4 JSE Intra-day Prices 43 3.5.5 JSE VWAP 43 3.5.6 JSE News Service 44 3.5.7 FTSE/JSE Africa Indices 45 3.5.8 Public Order Book Download 45 3.5.9 African Market Rules (Full Download) 46 3.5.10 African Market Rules (Changes) 46 3.5.11 African Market Reference Data (Full download) 47 3.5.12 African Market Reference Data (Changes)48 3.5.13 NSX Market Data 48 3.5.14 Market Reference Data (Full) 49 3.5.15 Market Reference Data (Changes) 49 3.5.16 Message Retrieval 50 4 ACCESS TO SERVICES 51 4.1 Introduction 51 4.2 Main Connection Options 51 5 AVAILABILITY OF THE SERVICE 55 5.1 Service Operation 55 5.2 Service Support 55 5.3 Service Hours 55 5.4 Your Comments 56 APPENDIX A - GLOSSARY OF TERMS A-1 APPENDIX B - BRIEF SERVICE SUMMARY B-1 APPENDIX C - SERVICE TO SERVICE CHANNELS AND JSE BDGS – CROSS REFERENCE C-1 APPENDIX D - SERVICE CHANNEL MESSAGE MAPPING D-1
TIS101 INTRODUCTION Issue 14 Copyright 2006 London Stock Exchange plc 7 SECTION 1 INTRODUCTION 1.1 The Service Definition This document provides an overview of the Exchange's trading and information services. The systems are based on an open architecture and generic business infrastructure. All Exchange information and trading systems are accessed through three common interfaces using standard data formats and are delivered via the Exchange's network. This allows flexibility to adapt rapidly to future trading requirements.
The three generic interfaces are: • the broadcast interface - for bulk delivery of information to subscribers • the interactive request interface - for re-requesting broadcasts from our information service and for Own Order Book downloads and Own Trades Order Book download (OTBD) • the secure interactive interface - for entering transactions to the Exchange’s trading system.
Please refer to TIS102 (Interface Specification) for detailed information of these interfaces. Trading The following trading Services are currently available on the Exchange’s trading system: • UK equities - ordinary shares issued by UK companies, traded on the order book of SETS and SETSmm, the quote-driven trading service of SEAQ, the quote and order driven service of SETSqx and the International Retail Service • International equities - there are currently both Global Depositary Receipts (‘GDRs’) and American Depositary Receipts (‘ADRs’) traded on the International Order Book. International equities are also trading on ITBB, mostly from Asia.
This service is segmented into ‘ISD regulated’ and ‘non-ISD regulated’ segments. EUROSETS is an order-driven trading service offering a competitive secondary market trading in liquid, large and mid-cap Dutch equities • AIM securities - shares and fixed interest stocks of companies admitted to the AIM market, quoted on SETSqx, SEAQ and SETSmm • UK gilts - securities issued by the UK Government, traded by Gilt-Edged Market Makers (GEMMs) • Sterling bonds - issued by companies or local authorities, quoted on SEAQ • Eurobonds and medium-term notes - issued by UK and international companies • Covered warrants - a warrant issued by a party other than the issuer or originator of the underlying asset • Depositary receipts - negotiable certificates traded on the International Order Book • Exchange traded funds - Simple, low-cost and flexible investments that track indices and sectors in the UK, US and European markets
INTRODUCTION TIS101 8 Copyright 2006 London Stock Exchange plc Issue 14 • Exchange traded commodities - dedicated SETSmm market segment for products such as oil and gold bullion and supported by registered market makers providing liquidity. Information All broadcast data is currently disseminated to subscribers via Infolect. This delivers significant benefits to customers, reinforcing our commitment to provide extensive and high-quality market data services. Infolect provides a number of broadcast services that disseminate order and quote details, trade reports and added value information.
Subscribers have the flexibility to choose the broadcast services that meet their individual requirements without having to subscribe to them all. Section 3 provides a description of each of the broadcast services in detail. 1.2 Service Changes This guide has been amended to incorporate all service changes made since September 2005, including the introduction of TradElect TM , SETSmm expansion, FTSE classification changes, the introduction of Exchange traded commodities and the decommissioning of Broadcast Data Groups (BDGs). 1.3 Readership The Service Definition is intended for Technical personnel who require an overview of the Trading and Information Services and an understanding of how to implement the services within their organisation.
The Service Definition should be read in conjunction with the Exchange's other technical specifications: Interface Specification (Ref: TIS102), Network Specification (Ref: TIS103) and Data Formats (Ref: TIS104). The Exchange may also publish updates to the technical information contained in this document via Service Announcements. These are available on our website http://www.londonstockexchange.com/en-gb/products/membershiptrading/techlib /servannounce/serviceannouncements.htm 1.4 Enquiries Please contact the Technical Information Desk if you require further copies of this document or related documentation.
The Technical Information Desk should also be contacted if you have technical enquiries about the trading and information services. All enquiries should be addressed to: Technical Information Desk 2 nd Floor London Stock Exchange 10 Paternoster Square London EC4M 7LS Telephone: +44 207 797 3939 or STX 33939 Questions may also be submitted via e-mail to: CTGroup@londonstockexchange.com 1.5 Web Site The technical documentation is available on the technical library of the London Stock Exchange Web Site.
TIS101 TRADING SYSTEMS AND SERVICES Issue 14 Copyright 2006 London Stock Exchange plc 9 SECTION 2 TRADING SYSTEM AND SERVICES 2.1 Introduction Section 2 presents an overview of the Exchange’s trading system and the services that are currently supported. Readers who require a more detailed understanding of these services should refer to the ‘Guide to Trading Services’ document which is available on our website at: http://www.londonstockexchange.com/NR/rdonlyres/EC177CD0-839C-42A0-B853-572 7DC6D272A/0/2426.doc 2.2 Trading Infrastructure The trading system is based upon a common business infrastructure which has the following components: • Market • Market Segments • Market Segment Rules • Market Sectors • Tradable Instruments in Market Segments • Member in Segment • Period Rules These components are described in more detail in Section 3 of the Interface Specification (Ref: TIS102).
In summary, the Exchange has the ability to configure a number of system rules which, when applied, allow for flexible trading environments. This approach allows for the combination of sets of different rules (governing, for example, trade publication, minimum and maximum quote and order sizes, execution rules) into market segments, so that different market segments can be established and operated according to different conventions, as market and regulatory conditions require. The architecture and application components that deliver the infrastructure of the trading system, and the secure interactive interface across which access is provided, combine to form the basis of all the Exchange's trading services.
All of the trading services are provided from a single technical platform, across a single interface, and can only be accessed remotely across this interface.
The trading facilities within the system provide scope for combining system functions in a range of different ways that can be used to provide additional trading services - or to refine existing ones as the demand arises.
TRADING SYSTEMS AND SERVICES TIS101 10 Copyright 2006 London Stock Exchange plc Issue 14 2.3 Trading Interface All Trading Services are provided over the Secure Interactive Interface. This interface is used exclusively for the communication of messages between participants and the trading system. Some of the key features of the secure interactive interface are as follows: • Messages are authenticated • Requests cannot be cancelled • Each request has a single response • The Exchange system may send unsolicited messages For more information about the trading interface please refer to Interface Specification document (Ref: TIS102).
Participants log-on to the trading system via the secure interactive interface and submit request messages. Each request message from a participant is immediately authenticated and if authentication is successful, acknowledged by a response message. In addition, the Exchange system is able to send the participant unsolicited messages that relate to events within the trading system affecting the participant, for example, execution of an order the participant had previously entered. The participant must acknowledge the unsolicited message on receipt.
The response messages are returned on the same connection as the request message was sent.
Response messages will be returned as the Exchange completes the processing of a particular message. These responses may be returned in a different sequence from that of the original request messages. The message reference number allows the participant to match the response with the corresponding request message. If there are multiple active connections for the same USAP then unsolicited messages will be spread across them.
TIS101 TRADING SYSTEMS AND SERVICES Issue 14 Copyright 2006 London Stock Exchange plc 11 2.4 SETS – Service Content The SETS order book on TradElect TM , includes the FTSE 100, the most liquid FTSE 250 securities, equities that have a LIFFE traded equity option. The order-driven trading system helps to meet the needs of today's market users and plays a vital part in maintaining London's position as Europe's leading financial centre. It ensures that London is equipped to handle the huge and growing volumes of business that are transacted on its markets - allowing market users to trade efficiently and cost-effectively.
Order Types There are three different types of order that apply to SETS on TradElect TM • limit order - a priced persistent order which will remain on the order book until it expires, is deleted or is fully executed against incoming orders • market order - an unpriced persistent order which will remain on the order book until it expires, is deleted or is fully executed against incoming orders. Market Orders are only enabled for entry in the call period of an auction Please note that all un-priced orders left on the book after the uncrossing process has completed are automatically removed prior to continuous trading beginning • Iceberg order - a priced persistent order that will remain on the book until it expires, is deleted or is fully executed against incoming orders.
Participants must populate the price, ‘total’ size and ‘peak’ size. The peak size is the volume of the order that is visible and appears to the market as a limit order. It will always be less than or equal to the total size of the Iceberg order. The total size minus peak size equals the amount of volume that is hidden from the market. When a peak is fully executed it is replaced by a new peak from the hidden volume until the iceberg is fully matched, modified or deleted.
The AD version of the 5EO Enter Order message uses a market mechanism to identify a combination of both the order type (eg Limit Order), and its execution type (eg Fill or Kill - Aggressive Type B). The new AE version of the 5EO Enter Order message explicitly uses a new ‘Validity Type’ field to describe the execution constraints of an order. Validity can be categorised into three different types; execution based validity (eg Execute and Eliminate), time based validity (eg Good Till Time) and period based validity (eg at the close).
Both limit and market orders are persistent and are displayed anonymously.
Please note that all un-priced orders left on the book after the uncrossing process has completed are automatically removed prior to continuous trading beginning. They are displayed anonymously. Incoming orders, which can only be submitted by SETS participants, are executed against them. Orders are executed in strict priority of price and time so that, at a given price, the oldest orders are executed first. The new Period based validity type introduces the concept of Parked Orders, allowing both the entry and removal of the order to be based upon a specific period based transition. An order submitted by a Participant will be held in the system until the applicable period is reached, at which point it is passed onto the order book.
Whilst the order is held by the system it is not publicly visible and does not participate in continuous trading/auctions. However, it may still be modified and deleted. Whilst parked, the order will maintain time priority in line with all other orders that have been parked for that particular instrument. Also, when modified, it follows the same rules as it would on the order book to determine whether price/time priority is maintained. As the period becomes effective the order will be ‘injected’ into the order book as if the Participant had at that point submitted the order themselves. The order will then either execute against any valid orders or remain on the book.
The transitioning of the period can also control the removal of the
TRADING SYSTEMS AND SERVICES TIS101 12 Copyright 2006 London Stock Exchange plc Issue 14 order, if it has not already been fully executed. Validity types such as ‘At the Open’ (ATO) will be entered at the start of the Auction Call period and if not executed, removed before transitioning into continuous trading. Orders may be modified by changing the absolute price and/or the relative size of the order. The current system will also allow the modification of an order’s Participant Reference, Date/Time Validity and/or Client Reference without also having to change either the price or size, or losing time/price priority.
An incoming order may execute against many orders on the book. Trades generated from automatically executed orders are published immediately and automatically. No separate trade report is required. The information presented here and throughout the remainder of section 2 is meant to give a brief outline of the trading services that are available on our systems. Readers should refer to our ‘Guide to Trading Services’ document for a more in depth understanding of how these services operate. 2.5 SETSmm – Service Content SETSmm is similar to the SETS order book. The main difference is that price formation centres around a central order book with registered market makers entering Enhanced Executable Quotes providing two-way prices during the mandatory trading period (08:00 – 16:35).
Market makers are obliged to provide prices and liquidity throughout the trading day according to the same principles as today on SEAQ. SETSmm is the London Stock Exchange’s trading service for Mid Cap, Small Cap, Dual Listed Irish Securities and the constituents of the AIM 50 index. 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. 2.6 SEAQ – Service Content SEAQ provides an automated quotations service for domestic UK securities not included in SETS, SETSmm or SETSqx.
In common with all the trading services, access to SEAQ is via the secure interactive interface and it supports the following key functions: • Quote entry, maintenance and closure by registered market makers using enhanced quotes with a ‘FQ’ market mechanism • Trade report entry and correction The service continues to support the operation of the competing market maker mechanism in the UK.
The FQ enhanced quote provides the convenience of a single message for submission of a two-way price and does not interact with the order book in any way and is treated purely as a price display mechanism. Registered market makers are also able to close individual quotes or all quotes in a market segment. SEAQ supports the entry of trade reports in domestic securities. All delayed trade processing is automated, so that block trades can be reported electronically to the Exchange and an electronic pre-release facility is provided to allow participants to automate the early release of block trades when unwound according to the Exchange's rules.
TIS101 TRADING SYSTEMS AND SERVICES Issue 14 Copyright 2006 London Stock Exchange plc 13 2.7 SEATS PLUS - Service Content This service will no longer be available when TradElect TM goes live. These securities will be transferred to SETSqx as part of the Exchange’s commitment to align it's trading services. For more information please refer to the SETSqx service and technical description available at: http://www.londonstockexchange.com/NR/rdonlyres/88F86AF1-24B2-407E-953B-09B A305CE1CE/0/SETSqxServiceTechnicalGuide.pdf 2.8 SETSqx – Service Content SETSqx will have similar functionality to the SEAQ quote based market model with the addition of an order display facility that periodically uncrosses (to enable compliance with MiFID requirements).
Unlike SETS and SETSmm, this service is not designed to support continuous order book trading. Market makers will continue to provide non-electronically executable quotes and liquidity throughout the trading day according to the same rules as on SEAQ. Today brokers either need to phone market makers or use their proprietary RSP systems to execute their business. SETSqx will additionally offer the opportunity to enter orders into the central trading system so satisfying MiFID limit order display requirements and provide the option to set their own price. Both named and anonymous order entry are supported by SETSqx.
2.9 International Order Book – Service Content The International Order Book is a fully electronic, ‘SETS style’ trading service provided by the London Stock Exchange to support trading in Global Depositary Receipts and American Depositary Receipts. The International Order Book is a trading service operated by the London Stock Exchange and is available to all member firms. The International Order Book supports all SETS order types with the addition of a named order type. Named orders make use of the Committed Principal (CP) order type to identify the participant behind the order. Named Orders work similarly to a limit order on the order book.
These orders can only be input in a principal dealing capacity. All other order types are able to execute against a named order.
Certain sectors within IOB are auction only sectors. In these sectors continuous execution is disabled and the order operates as a continuous auction call with three uncrossing periods a day. These are currently at 11:00, 14:00 and 15:40.
TRADING SYSTEMS AND SERVICES TIS101 14 Copyright 2006 London Stock Exchange plc Issue 14 2.10 International Retail Service – Service Content The International Retail Service (IRS) is a quote-driven trading service for international equity market securities. This service operates in the same way as SEAQ. In addition to the key features of the quote book the following characteristics also apply to IRS: • Market makers will replace liquidity providers and provide prices in European and US bluechip securities in sterling • All securities are quote-driven • Settlement will take place in CREST Depositary Interest (‘CDI’) form at the domestic UK tariff • Full coverage of the following indices: NASDAQ 100, AEX, SMI, CAC40, DAX30, MIB30, Eurostoxx 50, FTSE Eurotop 100, DOW JONES IA 30 (excluding Walt Disney) This service is split into 'ISD regulated' and 'non-ISD regulated' segments.
This differentiation has been introduced to allow for clear identification of those securities captured by the suite of directives being implemented over the next few years as part of the European Union’s Financial Services Action Plan (FSAP).
Securities admitted to trading in the ISD regulated segments will be, in the main, those with a listing with an EU competent authority. These securities will become subject to the suite of FSAP Directives as they are implemented over time. Securities which are not listed within the EU need not be admitted to a regulated market and will not be subject to European (ISD) regulation. Note that there is no difference in the operation of the ISD and non-ISD regulated segments, and the differentiation is not applied to the trading day model. It is purely a mechanism for the differentiation between securities that are subject to different levels of European regulation.
For more information on this service please refer to our Guide to Trading Services, available at http://www.londonstockexchange.com/NR/rdonlyres/C50E4770-12CE-4FB7-8058-075 2C44F790F/0/GuideToTradingServicesv70.doc 2.11 International Bulletin Board The International Bulletin Board (ITBB) is part of the International Order Book (IOB) market offered by the Exchange for equity trading. Whilst offering the same advantages of electronic execution as that of IOB, this mechanism also offers the opportunity for participants to register as Market Makers to support trading liquidity.
Certain sectors within ITBB are auction only sectors.
In these sectors continuous execution is disabled and the order book operates as a continuous auction call with three uncrossing periods a day. These are currently at 11:00, 14:00 and 15:40. Unlike IOB which uses Named Orders, ITBB uses the new 5EQ Enter Enhanced Quote messages. The enhanced quote can continue supporting the existing (nonexecuting) firm quotes in addition to the new functionality as follows. The enhanced quote provides the convenience of a single message for submission of a two way price, but has the added advantage of treating the two prices as individual executable objects.
This results in behaviour more closely resembling an order, and makes it possible to choose whether the quote is executable or not. This is achieved through the ‘Market Mechanism Type’ that must specify either ‘EQ’ for an executable quote or ‘FQ’ for a (nonexecutable) firm quote.
TIS101 TRADING SYSTEMS AND SERVICES Issue 14 Copyright 2006 London Stock Exchange plc 15 2.12 Covered Warrants – Service Content The Key elements of the Covered Warrant Service are as follows: Trading takes place in a continuous execution environment where liquidity providers known as Committed Principals (CPs) have an obligation to provide two way prices throughout the trading day and for the lifetime of the covered warrant. Other market participants can execute against these orders. In effect, this provides an automated ‘market making’ model. Prices will be subject to a price monitoring check before execution takes place.
If a price is entered that is more than a specified value away from the previously traded price, a suspension will be triggered The market model for covered warrants has the following characteristics: • a pre-trade, “price-orientation” period between 8:05 and 8:15. Executable Enhanced Quotes can be entered or deleted during this period.
• a Mandatory Committed Principal period from 8:15 – where market participants can only enter aggressive orders, executing against Executable Enhanced Quotes, for US based warrants the mandatory period starts at 14:45, however execution is enabled from 08:15 for aggressive order types • if the underlying security on which the warrant is based is subject to a temporary suspension of automatic execution, the warrant will not be suspended • all markets close at 16:30 with the exception of European based warrants where the market closes at 16:00. However if Executable Enhanced Quotes are still open after 16:00 in these European warrants full execution of aggressive order types is enabled.
Closing prices for European warrants will be frozen at 16:00 and not 16:30. • after the market close, all Executable Enhanced Quotes will be automatically deleted.
Please refer to the Covered Warrant Technical Guide on the London Stock Exchange Web site for additional information. 2.13 Exchange Traded Funds Exchange Traded Funds (ETFs) give private investors the chance to buy whole indices as easily as buying a share on the London Stock Exchange. This creates real opportunities – widening the reach of portfolios and making top-down investment more cost-effective. For brokers, ETFs also present a growing opportunity – to offer an attractive new product that trades and settles in exactly the same way as shares.
ETFs are in the ETFS segment which is a SETSmm type environment.
This allows price formation around a central order book with registered market makers entering executable enhanced quotes providing two-way prices during the mandatory trading period (08:00 – 16:45). All business executed via the ETFS order book will be covered by the existing Central Counterparty (CCP) Service for Equities with settlement netting. 2.14 Exchange Traded Commodities The trading mechanism for ETCs is the same as the ETF segment in every respect and will support products such as gold bullion and oil. Trades will be cleared by the clearer.