Your guide to trading on London Stock Exchange Group
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Your guide to trading on London Stock Exchange Group
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“With a single connection to Our diverse range of offerings 04
London Stock Exchange Group, London Stock Exchange trading services 05
investors can access securities
from over 100 countries London Stock Exchange Main Market 06
including developed as well London Stock Exchange AIM 09
as emerging markets.” London Stock Exchange International Order Book 10
Shanghai-London Stock Connect 12
Turquoise 14
Borsa Italiana 15
Exchange Traded Products 16
Fixed income 17
Closed-ended funds 18
By making this communication, none of London Stock Exchange Group plc and/or its group undertakings
(which shall be construed in accordance with section 1161 of the Companies Act 2006) (together, “LSEG”)
intend to invite or induce you to engage in any investment activity for the purposes of the UK regulatory
regime (other than, where relevant, in respect of the London Stock Exchange plc’s exempt activities of
FTSE Russell 20
operating UK-regulated investment exchanges and providing clearing services in the UK).
This publication does not constitute an offer to buy or sell, or a solicitation of an offer to sell, any securities,
or the solicitation of a proxy, by any person in any jurisdiction in which such an offer or solicitation is not
authorised, or in which the person making such an offer or solicitation is not qualified to do so, or to any
person to whom it is unlawful to make such an offer or solicitation.
Information in this publication may or may not have been prepared by the LSEG, but is made without any
responsibility on its part. All information in this publication is provided ‘as is’ and LSEG does not make any
representations and disclaims to the extent permitted by law all express, implied and statutory warranties
of any kind in relation to this publication, including warranties as to accuracy, timeliness, completeness,
performance or fitness for a particular purpose.
No action should be taken or omitted to be taken in reliance upon information in this publication. LSEG
does not accept any liability for the results of any action taken or omitted on the basis of the information
in this communication. The information in this publication is not offered as advice on any particular matter
and must not be treated as a substitute for specific advice. In particular, information in this publication does
not constitute legal, tax, regulatory, professional, financial or investment advice. Advice from a suitably
qualified professional should always be sought in relation to any particular matter or circumstances.
AIM, London Stock Exchange, the London Stock Exchange coat of arms device are registered trademarks of
London Stock Exchange plc. Other logos, organisations and company names referred to may be the trademarks
of their respective owners. No part of these trademarks, or any other trademark owned by LSEG can be used,
reproduced or transmitted in any form without express written consent by the owner of the trademark. Your guide to trading on London Stock Exchange Group 03
Our diverse range London Stock Exchange
of offerings trading services
London Stock Exchange Group (LSEG) operates – SETS is London Stock Exchange’s flagship electronic order book, trading
a broad range of international equity, ETP, bond DID YOU KNOW? FTSE 100, FTSE 250 and FTSE Small Cap index constituents as well as liquid AIM,
and derivatives markets, including London Stock Irish and London Standard Listed securities. Auctions are available at 7.50am,
Exchange; Borsa Italiana; and Turquoise, a
pan-European equities trading venue. Through
its platforms, LSEG offers market participants,
70%+
of revenues of London
12.00pm and 4.30pm.
– SETSqx is designed for securities less liquid than those traded on SETS and
combines continuous quote-driven market with five electronic auctions
including retail investors, institutions and SMEs (8.00am, 9.00am, 11.00am, 2.00pm and 4.35pm).
Stock Exchange
access to Europe’s capital markets. London
largest 100 companies – International Order Book (IOB) is dedicated for trading GDRs using the same
Stock Exchange Trading Services are designed to
are derived from underlying technology as SETS. Almost all securities are traded in USD.
maximise liquidity for all participants and include
outside the UK Auctions are available at 7.50am, 12.00pm and 4.30pm.
fully electronic order-driven services for liquid UK
and international Global Depositary Receipts, and
quote-driven market maker services for less liquid
TRADING ON SETS 16:30 Closing auction and closing price crossing
securities. With a single connection to London session (CPX) A short, modified regular trading session
Stock Exchange Group, investors can access that follows the closing auction, where executions can
securities from over 100 countries including 07:50 Opening auction call only be executed at the closing auction price.
developed as well as emerging markets.
07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00
Trading venues
08:00 SETS opens for trading 12:00 Intra-day auction A two-minute call period
followed by a random 30-second uncrossing
Key terms Global Depositary Receipts (GDRs)
Negotiable certificates issued by depositary
Securities available Auction banks which represent ownership of a given
A period where no automatic execution takes number of a company’s shares which can be
place in order to concentrate available liquidity. listed and traded independently from the
During an auction call period, orders can be underlying shares. These instruments are
Equities including Depositary Receipts ETPs Closed-ended funds Bonds Derivatives entered, modified or deleted. Following the typically used by companies from emerging
auction call period an auction uncrossing takes markets. These securities are generally traded
place. The auction uncrossing generates the in USD on the exchange’s electronic trading
auction uncrossing price. service, the International Order Book (IOB).
Your guide to trading on London Stock Exchange Group 04 Your guide to trading on London Stock Exchange Group 05
London Stock Exchange European trading hours sit between
US and Asia trading hours
Main Market
London Stock Exchange’s Main Market is
BST* 8.00am China market closes UK MARKET OPENS
the world’s most international market for the
admission and trading of equity, debt and other
securities. Its location at the heart of the world’s
leading financial centre makes it the ideal home
BST 9.00am HK market closes
to over 2,000 companies, including many of
the world’s largest, most successful and most
dynamic companies. It has the deepest pool
of capital in Europe.
Underpinned by London’s balanced and globally-
respected standards of regulation and corporate DID YOU KNOW?
2,000+
governance, the Main Market represents a badge
of quality for every company admitted to and
traded on it, and an aspiration for many
companies worldwide. listed companies
5
TOP FIVE MOST TRADED STOCKS IN 2018 BST 2.30pm US market opens
Issuer name TIDM
of the top 10 IPOs
BP PLC BP by market cap in 2018
were international
HSBC HOLDINGS PLC HSBA BST 4.30pm UK MARKET CLOSES
Banks, Mining and
BRITISH AMERICAN TOBACCO PLC BATS Oil & Gas producers are
the three most traded
RIO TINTO PLC RIO
sectors on Main Market
ROYAL DUTCH SHELL PLC RDSA in 2018
Home to FTSE 100,
FTSE 250, FTSE 350
and FTSE All-Share
* British Summer Time
Your guide to trading on London Stock Exchange Group 06 Your guide to trading on London Stock Exchange Group 07
London Stock Exchange
AIM
AIM is the world’s leading international growth
market. Since its launch in 1995, over 3,800 DID YOU KNOW?
companies from across the globe have chosen
to join AIM. Powering the companies of tomorrow,
AIM continues to help a wide range of businesses,
including early-stage, venture-capital-backed
900+
quoted companies
and more established companies, raise the
$180bn+
capital they need for expansion.
TOP 10 TRADED NAMES ON AIM IN 2018
Total money raised
Company name ICB sector since launch in 1995
ASOS plc General Retailers Consumer Services,
Technology and
Fevertree Drinks plc Beverages
Financials were the
Burford Capital Limited Financial Services three most traded
industries in 2018
IQE plc Technology Hardware
& Equipment AIM is the largest
growth market in Europe
Boohoo Group plc General Retailers
AIM securities have
Abcam plc Pharmaceuticals
& Biotechnology significant tax
advantages as they
Blue Prism Group plc Software & attract no stamp duty
Computer Services
Victoria plc Household Goods
& Home Construction
Keywords Studios plc Support Services
Hurricane Energy plc Oil & Gas
Your guide to trading on London Stock Exchange Group 09
London Stock Exchange
International Order Book
International Order Book is a London Stock
Exchange dedicated service to trade Global DID YOU KNOW?
Depositary Receipts (GDRs). GDRs are securities
issued by depositary banks, which represent
ownership of a given number of a company’s
shares. Traded in USD, it offers cost-efficient,
140+
issuers from
secure and transparent access to invest in some
30+ countries
of the world’s fastest-growing markets.
The Shanghai-London Stock Connect GDRs will Most traded Asian DR
be traded on the newly dedicated Shanghai in 2018
Segment of the International Order Book.
DID YOU KNOW?
Top three traded
Russian GDRs in 2018
Sberbank of Russia
PJSC Lukoil
PJSC Gazprom
Top three traded South
Korean GDRs in 2018
Samsung Electronics
Hyundai Motor Company
LG Electronics
Top three traded
Indian GDRs in 2018
Reliance Industries
Countries
State Bank of India
with GDR Axis Bank
listing on LSEG
Your guide to trading on London Stock Exchange Group 10
Shanghai-London Trading Stock
Stock Connect Connect GDRs
The UK and China are working in partnership
Traded on Underlying securities Cleared and settled at
to create the Shanghai-London Stock Connect. DID YOU KNOW?
It will allow global investors to benefit from GDR LSE A Shares already listed LCH, Euroclear Bank
China’s growth through London, while UK-listed The Shanghai-London (Global Depository Receipt) and traded on LSE
companies will be able to access Chinese Stock Connect represents CDR SSE Premium shares already ChinaClear
investors directly. It will allow listed companies a number of firsts: (Chinese Depository Receipt) listed and traded on LSE
to be traded by more investors, and provide
FIRST time any foreign
them with more investment choice.
companies will be able
to list in Mainland China New dedicated Shanghai segment Trading and settlement in USD
on International Order Book to trade on T+2 – no pre-funding and no
FIRST time SSE-listed Stock Connect GDRs. pre-delivery requirements.
companies will be able
to raise capital abroad
through instruments
fungible with their
All trading participants with
access to International Order Book 9.00am–4.30pm
domestic shares (two trading will be able to access
liquidity pools, one price) Shanghai Segment. Shanghai Segment trading hours
FIRST time international
investors will be able to
access China A-shares 16:30 Closing auction and closing
price crossing session (CPX)
from outside Greater
A short, modified regular trading
China (and through 09:00 Shanghai session that follows the closing
international trading and 08:00 IOB opens Segment GDRs auction, where executions can only be
settlement practices) for trading begin trading executed at the closing auction price.
FIRST time Chinese
investors will be able 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00
to access international
stocks from China without
being subject to domestic 07:50 Opening 08:50 Opening 12:00 Intra-day auction
capital controls. auction call auction call for A two-minute call period followed
Shanghai Segment by a random 30-second uncrossing
Your guide to trading on London Stock Exchange Group 12 Your guide to trading on London Stock Exchange Group 13
Turquoise Borsa Italiana
Turquoise is a pan-European trading platform
majority owned by London Stock Exchange DID YOU KNOW? DID YOU KNOW?
Group, in partnership with 12 investment banks.
$8tn+ 241
It offers a broad universe of 4,500 stocks with one
connection to 19 major European and emerging
markets, as well as US stocks, IOB Depositary
traded since launch companies
Receipts, ETFs and European Rights Issues.
listed on MTA
Turquoise Plato™ entered
1 connection
2019 as the fastest growing
and largest European
dark pool as recognised
115
19 countries by Rosenblatt Securities
companies quoted
on AIM Italia
4,500+
24
Turquoise was featured in
securities The Parliamentary Review
2016 and 2018 and
recognised as the winner Italian listed luxury
of The TRADE’s Leaders brands are included in
in Trading 2017 Award the FTSE Italia Brands
for Block Trading Venue index, which promotes
the best Italian brands
Turquoise won the by creativity, excellence,
Financial News 2015 intuition, innovation
Award for Excellence in and global appeal
Trading and Technology
for Most Innovative Borsa Italiana has been part of London Stock Top three most traded
Trading Product/Service. Exchange Group since 2007. Companies can luxury brands in 2018:
choose to join Borsa Italiana’s Main Market (MTA) Ferrari, Moncler and
or the Italian Growth Market, AIM Italia. MTA is Pirelli & C
dedicated to mid and large-size companies that
meet the highest international standards. AIM
Italia is a dedicated growth market for SMEs
looking to raise capital.
Your guide to trading on London Stock Exchange Group 14 Your guide to trading on London Stock Exchange Group 15Exchange Fixed income
Traded Products
ETPs fall broadly into two categories: ETFs London Stock Exchange cements its position
and other ETPs which include Exchange Traded DID YOU KNOW? as a leading global venue for international debt
Commodities (ETCs) and Exchange Traded Noted fundraising, with 13,000 listed debt instruments
(ETNs). An ETF is an open-ended collective
investment scheme that is traded on one or
more exchanges. The aim of an ETF is to track
85%
increase in order-book
in 43 currencies from over 1,170 issuers. Our
markets are home to debt securities issued by
household FTSE 100 names such as National Grid,
the performance of a specific index, which can Tesco, Barclays Bank, British Telecom, British
turnover over the last
be country- or region-specific and/or based on Petroleum and Royal Mail amongst others.
six years DID YOU KNOW?
a variety of asset classes such as fixed income,
London Stock Exchange platforms offer many
1,600+ 478
money markets and many more. Like a fund, an
different options for private investors wanting
ETF gives access to a portfolio of shares, bonds
to access sources of retail-focused fixed income
or other asset classes, and like shares, ETFs are
ETPs on our market capital – the Order Book for Retail Bonds (ORB) fixed income ETFs
bought and sold on exchange. Consequently,
from over 30 issuers is an electronic, order-driven trading service
ETFs combine the diversification of an investment
47
for over 160 UK government, supranational
fund with the tradability of a share.
With ETFs, retail investors and corporate bonds. Since 2010, it has offered
can now gain access to retail investors efficient access to an on-screen
TOP FIVE TRADED ETPS listed debt funds on
broad-ranging exposures secondary market in London-listed debt
instruments. Our Order Book for Fixed Income our market worth over
Issuer name TIDM for the same cost as an
securities (OFIS) also has the functionality to $17 billion, including
institutional investor.
display prices for retail bonds, allowing for a investment across direct
ISHARES CORE FTSE100 UCITS ETF ISF ETFs often have lower
wide variety of bond structures to be accessible lending, real estate and
GBP (DIST) management fees than
to retail investors. A common characteristic of all infrastructure debt
active funds and attract
VANGUARD S&P 500 UCITS ETF VUSD retail bonds listed on ORB and OFIS is that they
110+
no stamp duty.
have trading denominations of under £1,000.
ISHRS CORE S&P 500 UCITS ETF CSPX The majority of retail dedicated issuances have
USD (ACC) been in £100 denominations with a minimum London is the premier
£2,000 investment. And retail investors also Renminbi trading hub
ISHRS CORE MSCI WORLD ETF IWDA
have access to a wide variety of alternative fixed outside Greater China
USD (ACC)
income products including Fixed Income ETFs with 110+ RMB bonds,
ISHARES PHYSICAL GOLD ETC IGLN and closed-ended funds. including the first
ever offshore Chinese
Sovereign RMB bond
Your guide to trading on London Stock Exchange Group 16 Your guide to trading on London Stock Exchange Group 17Closed-ended funds London investment
funds sector breakdown
London Stock Exchange’s investment fund market Diverse investment
has over 450 listed funds worth over $220 billion.
London-listed funds offer exposure to a range of mandates across
investment strategies across geographies, equities asset classes and
and debt, and a range of alternative asset
strategies including infrastructure, real estate,
geographies
private equity, royalties and renewable energy. Source: London Stock
Investment funds have listed on our markets for Exchange, Numis Investment
450
Companies Research
over 150 years, and cover over 80 sub-sectors.
These can be accessed by investors, including
retail investors on the Premium Segment of the
Main Market, and by institutional, professional, DID YOU KNOW?
professionally-advised and knowledgeable
$220bn
investors on our Specialist Fund Segment. From investment
funds
accessing UK and European fintech to solar assets
in the US and Australia, you can access the most total market 31%
international and diverse closed-ended funds value of funds UK
market through London Stock Exchange.
Key highlights 200+
fund managers have
12%
– Fund managers that list funds in London Debt
existing listed funds
include Baillie Gifford, JP Morgan Asset
in London
Management, Aberdeen Standard Investments,
300% 10% 10% 8% 8% 7%
Janus Henderson, Fidelity and BlackRock.
– Innovative asset classes such as music royalties,
energy efficiency and energy storage were Global Property Asia Pacific Sector Private Equity
welcomed to London’s funds market in 2018. listed green fund sector Specialist
has grown over 300%
– We celebrated the largest fund launch ever in the last five years
in Smithson Investment Trust in 2018,
raising over $1 billion which invests in
5% 3% 3% 2% 1%
Emerging Infrastructure Hedge Funds Europe North America
global small-medium companies. Markets
Your guide to trading on London Stock Exchange Group 18 Your guide to trading on London Stock Exchange Group 19FTSE Russell
FTSE Russell is a leading global provider of
benchmarks, analytics and data solutions with DID YOU KNOW?
multi-asset capabilities. FTSE Russell’s expertise
and products are used extensively by institutional China A Shares are
and retail investors globally. Approximately $16 included in FTSE’s global
trillion is currently benchmarked to FTSE Russell equity benchmarks.
indexes. For over 30 years, leading asset owners,
FTSE Russell was the
asset managers, ETF providers, and investment
first international index
banks have chosen FTSE Russell indexes to
provider of mainland
benchmark their investment performance
China benchmarks
and create investment funds, ETFs, structured
20 years ago.
products and index-based derivatives. FTSE
Russell indexes also provide clients with tools for
asset allocation, investment strategy analysis
and risk management.
Your guide to trading on London Stock Exchange Group 20London Stock Exchange
10 Paternoster Square
London EC4M 7LS
Telephone +44 (0)20 7797 1000
lse-enquiry@lseg.com
www.lseg.com
@LSEGplc
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